Near Term Trend: ↔ (sideways with a positive bias)
Market update: Nifty traded again in the familiar range of 10930 -10850 for entire day. It dropped to 10860 levels after opening at 10930 levels but support came at lower levels and it finally closed at 10920 levels down 40 points.
For traders this range bound movement is becoming very frustrating and those who buy calls/puts are losing big time (doesn't matter whether you are buying call or puts) because of time decay premiums are falling rapidly. 25 days are gone by and Nifty is still trading around 10900.
Yesterday it looked like as if nifty has broken rage and finally moved on but market had other ideas and has clearly shown that it will take some more time before it decides to break free. However markets cannot continue like this in a tight range and sooner or later they will break free.
Overall market remains choppy and range bound. There is no change in our overall views and we still feel markets remains in a downtrend but as long as 10840 support is not breached we can see higher levels from here in short term. If 10840 is taken out then there is a possibility of markets testing 10700 level again. Even though the breakout yesterday didn't sustain that doesn't mean downtrend has started. We need to see more weakness to conclude that.
Weak Asian markets/global cues and falling INR/USD is weighing strongly on the markets also the market breadth was again negative today (2:3 in favor of declines) but PCR remains strong at 1.3 suggesting some support in near term.
Market remain treacherous and deceptive and like I said yesterday if you try to do too many trades in the current scenario then the chances you are going to lose. What we are witnessing is a classic corrective complex corrective which precedes any big trend in the market. This is markets way to shake traders confidence. One is bound to lose if hes continuously trading in/out anticipating a breakout on both sides. When the time comes and actual trend begins most traders would have already suffered enough losses in this range bound market and would be scared of taking a position.
If your capital is small then you must sit out and wait for clear trend to begin and trade only once this consolidation is over. Still if you wish to trade then best way to trade such markets is to trade in the direction of near term trend without worrying about intraday swings (don't change your stand basis intraday choppiness). Keep a tight stop loss/ target and keep holding position till either SL hits or target is achieved.
Trading Recommendations: Like I mentioned above if your capital is small then sit out till the time this consolidation is over and a clear trend emerges having said that, as per our view markets can still see higher levels from here so that is a real possibility even now. If you wish to subscribe to our live whatsapp Nifty trading updates/trading recommendation during market hours then you may subscribe using below link:
http://niftywaveindia.blogspot.com/2019/01/join-us-on-whatsapp-how-to-subscribe.html
Good Day and Good Trading to You!
Market update: Nifty traded again in the familiar range of 10930 -10850 for entire day. It dropped to 10860 levels after opening at 10930 levels but support came at lower levels and it finally closed at 10920 levels down 40 points.
For traders this range bound movement is becoming very frustrating and those who buy calls/puts are losing big time (doesn't matter whether you are buying call or puts) because of time decay premiums are falling rapidly. 25 days are gone by and Nifty is still trading around 10900.
Yesterday it looked like as if nifty has broken rage and finally moved on but market had other ideas and has clearly shown that it will take some more time before it decides to break free. However markets cannot continue like this in a tight range and sooner or later they will break free.
Overall market remains choppy and range bound. There is no change in our overall views and we still feel markets remains in a downtrend but as long as 10840 support is not breached we can see higher levels from here in short term. If 10840 is taken out then there is a possibility of markets testing 10700 level again. Even though the breakout yesterday didn't sustain that doesn't mean downtrend has started. We need to see more weakness to conclude that.
Weak Asian markets/global cues and falling INR/USD is weighing strongly on the markets also the market breadth was again negative today (2:3 in favor of declines) but PCR remains strong at 1.3 suggesting some support in near term.
Market remain treacherous and deceptive and like I said yesterday if you try to do too many trades in the current scenario then the chances you are going to lose. What we are witnessing is a classic corrective complex corrective which precedes any big trend in the market. This is markets way to shake traders confidence. One is bound to lose if hes continuously trading in/out anticipating a breakout on both sides. When the time comes and actual trend begins most traders would have already suffered enough losses in this range bound market and would be scared of taking a position.
If your capital is small then you must sit out and wait for clear trend to begin and trade only once this consolidation is over. Still if you wish to trade then best way to trade such markets is to trade in the direction of near term trend without worrying about intraday swings (don't change your stand basis intraday choppiness). Keep a tight stop loss/ target and keep holding position till either SL hits or target is achieved.
Trading Recommendations: Like I mentioned above if your capital is small then sit out till the time this consolidation is over and a clear trend emerges having said that, as per our view markets can still see higher levels from here so that is a real possibility even now. If you wish to subscribe to our live whatsapp Nifty trading updates/trading recommendation during market hours then you may subscribe using below link:
http://niftywaveindia.blogspot.com/2019/01/join-us-on-whatsapp-how-to-subscribe.html
Good Day and Good Trading to You!
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