Near Term Trend: ↓ (Down)
Market update: Nifty opened 20 points at 10880 levels but quickly dropped to 10830 levels and kept grinding there for major part of day. It kept on trading weak and even touched a day low of 10805 but everything changed during last hour. There was a sharp upmove and Nifty rose nearly 100+ points from day low and gave a closing above 10900.Overall it was a low volume day with majority of world markets closed.
Up move in last one hour was indeed impressive and a close above 10900 does suggest that markets may be are not ready to fall down immediately in near term. However its too early to conclude that the down move is done with and Nifty is in bullish zone. Overall Nifty remains in a bearish trend and theres just a possibility now that this corrective move might extend ( if that happens we might see higher levels on Nifty).
The fall from 10980 to 10535 had taken 4 trading days and now this pullback from 10535 to 10916 (today) has also consumed 4 days but it has failed to post new highs. If this was indeed a bullish move then Nifty should have gone above 10980 by now. Nifty can still rise from here no doubt about that but even then it will remain a corrective move only.
If the down move has to start then it should start soon (there is not much time remaining now), otherwise there is a possibility that this corrective move will extend( both price wise and time wise). Technically speaking, the F leg of diametric lasted for 4 days and today G leg has also consumed 4 days so if it doesn't star falling in next 1-2 days then there is a probability of an extended G leg or Nifty starting a second corrective.
Strength above 10920 tomorrow will be positive for market and on the other hand break of 10840 on the downside will be negative.
Trading Recommendations: We continue to hold our existing shorts and had even initiated fresh shorts (light qty) today at 10823 but exited later in the day around 10885 levels. We need to see further strength in market above 10920 levels to change our near term perspective.
Happy Trading and a Very Happy New Year to Everyone!
Market update: Nifty opened 20 points at 10880 levels but quickly dropped to 10830 levels and kept grinding there for major part of day. It kept on trading weak and even touched a day low of 10805 but everything changed during last hour. There was a sharp upmove and Nifty rose nearly 100+ points from day low and gave a closing above 10900.Overall it was a low volume day with majority of world markets closed.
Up move in last one hour was indeed impressive and a close above 10900 does suggest that markets may be are not ready to fall down immediately in near term. However its too early to conclude that the down move is done with and Nifty is in bullish zone. Overall Nifty remains in a bearish trend and theres just a possibility now that this corrective move might extend ( if that happens we might see higher levels on Nifty).
The fall from 10980 to 10535 had taken 4 trading days and now this pullback from 10535 to 10916 (today) has also consumed 4 days but it has failed to post new highs. If this was indeed a bullish move then Nifty should have gone above 10980 by now. Nifty can still rise from here no doubt about that but even then it will remain a corrective move only.
If the down move has to start then it should start soon (there is not much time remaining now), otherwise there is a possibility that this corrective move will extend( both price wise and time wise). Technically speaking, the F leg of diametric lasted for 4 days and today G leg has also consumed 4 days so if it doesn't star falling in next 1-2 days then there is a probability of an extended G leg or Nifty starting a second corrective.
Strength above 10920 tomorrow will be positive for market and on the other hand break of 10840 on the downside will be negative.
Trading Recommendations: We continue to hold our existing shorts and had even initiated fresh shorts (light qty) today at 10823 but exited later in the day around 10885 levels. We need to see further strength in market above 10920 levels to change our near term perspective.
Happy Trading and a Very Happy New Year to Everyone!
yes sir,very fast and sharp unexpected up move I think bulls are trying to break forming of three buddha on chart
ReplyDeleteYes very sharp. Up move, so far the indications are its probably because of short covering (over all open intrest dipped in nifty suggesting people squared off their positions) also the volumes were pretty thin around 30 40% less(18k crores agains avg if 25 30 crores). If its true then nifty should start its downmove soon elae we should get out and wait for dust to be settled.
DeleteI don't know it's prepland or manuplated Or something cook or as natural but i got this msg at 10'clock'( Buy Nifty @10850 Sl 10818 tgt 10930 Intraday) but i didn't notice because this masg is opposite of my bearish mood
ReplyDeleteSir, intraday is not my cp of tea. I advise trade only if I see a sustainable movement or trend emerging.
DeleteAlso there are different people giving different trading calls throughout the day, we shouldn't get bothered by it. Everyone has their own way of predicting market movement. I follow my own methods I don't give much importance to other websites or floating trading recommendations (specially intraday calls)
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