Near Term Trend: ↔ (sideways with a downward bias)
Market update: Nifty opened 50 points up at 10700 levels but couldn't keep up the momentum and drifted down to 10620 levels. Some support at the lower levels saw Nifty closing at par at 10752.
Overall it was not a good day for bulls, even though there was no breakdown as such , bulls failed to add any gain above the yesterdays high which suggests the confidence to buy at higher level is lacking and for now Bulls just want to buy at dips.
As we mentioned yesterday, looking at recent history there is a trend of 4-6 days of bearish moves followed by 4-6 days of bullish moves. Market has been playing same script for last 2-3 months and same holds true even for now. There is a small possibility that market will remain range bound or +ve for next 2-3 days however if it fails to add any sizeable gain during this time then bears might get active again.
Overall it seems the risk on the downside are increasing a bit and there is a possibility that short term top is already done at 10987 levels and markets have already started a new leg down. However for now it just remains a possibility and if its true then we might see a dip from here to the lows of 10300 (or even lower) levels once again. Volatility is likely to be picked up because of budget and expiry tomorrow so be prepared for some wild swings
Technically speaking, It seems the G leg is over ( at failure point of 10930) and we have started a new leg on the downside, however there is still a possibility that either G leg is subdividing or its just an X wave which means another corrective/sideways action will open soon. So any trading strategy needs to be designed keeping these thing in mind. Scenario is likely to become clear as the trading progress from hereon. If its an X wave then we should not break below 10340 levels ( election day result) and if its part of G leg then we can see a bounce from any where from 10500-10600 levels.
Trading recommendations: Markets are posing difficult questions right now (they always do that don't they). So one must be extremely careful in deciding the trading strategy. Whichever way one trades, the stop loss will be big. For now one should refrain from buying at current levels and wait for Nifty to cross 10800-820 levels first. If you want to short then one may use pull back for shorts ( by keeping a SL of 10840 levels) but keep in mind due to expiry and budget 100-150 point movement can come anytime triggering your stop loss. Less risky traders are advised to observe and wait till budget is out of the way.
We keep guiding and advising our subscribers through regular whatsapp updates as to what needs to be done during trading hours.If you wish to subscribe to our live whatsapp Nifty calls/trading recommendation then you may subscribe using below link:
http://niftywaveindia.blogspot.com/2019/01/join-us-on-whatsapp-how-to-subscribe.html
Market update: Nifty opened 50 points up at 10700 levels but couldn't keep up the momentum and drifted down to 10620 levels. Some support at the lower levels saw Nifty closing at par at 10752.
Overall it was not a good day for bulls, even though there was no breakdown as such , bulls failed to add any gain above the yesterdays high which suggests the confidence to buy at higher level is lacking and for now Bulls just want to buy at dips.
As we mentioned yesterday, looking at recent history there is a trend of 4-6 days of bearish moves followed by 4-6 days of bullish moves. Market has been playing same script for last 2-3 months and same holds true even for now. There is a small possibility that market will remain range bound or +ve for next 2-3 days however if it fails to add any sizeable gain during this time then bears might get active again.
Overall it seems the risk on the downside are increasing a bit and there is a possibility that short term top is already done at 10987 levels and markets have already started a new leg down. However for now it just remains a possibility and if its true then we might see a dip from here to the lows of 10300 (or even lower) levels once again. Volatility is likely to be picked up because of budget and expiry tomorrow so be prepared for some wild swings
Technically speaking, It seems the G leg is over ( at failure point of 10930) and we have started a new leg on the downside, however there is still a possibility that either G leg is subdividing or its just an X wave which means another corrective/sideways action will open soon. So any trading strategy needs to be designed keeping these thing in mind. Scenario is likely to become clear as the trading progress from hereon. If its an X wave then we should not break below 10340 levels ( election day result) and if its part of G leg then we can see a bounce from any where from 10500-10600 levels.
Trading recommendations: Markets are posing difficult questions right now (they always do that don't they). So one must be extremely careful in deciding the trading strategy. Whichever way one trades, the stop loss will be big. For now one should refrain from buying at current levels and wait for Nifty to cross 10800-820 levels first. If you want to short then one may use pull back for shorts ( by keeping a SL of 10840 levels) but keep in mind due to expiry and budget 100-150 point movement can come anytime triggering your stop loss. Less risky traders are advised to observe and wait till budget is out of the way.
We keep guiding and advising our subscribers through regular whatsapp updates as to what needs to be done during trading hours.If you wish to subscribe to our live whatsapp Nifty calls/trading recommendation then you may subscribe using below link:
http://niftywaveindia.blogspot.com/2019/01/join-us-on-whatsapp-how-to-subscribe.html
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