Near Term Trend: ↓ (Down)
Market update: Today, before the market opened, there was some hope among bulls that Nifty will be able to defend 10750-10800 levels ( Especially after overnight recovery in US stocks), however it was not to be. Nifty opened at par and kept on drifting down throughout the day and closed at 10670 level ( down 120 points). Its second consecutive day for Nifty where it has given 100+ point fall and in just 2 trading days Nifty has fallen from 10915 to 10670.
Even though the fall of last 2 days is sharp and has taken most bulls by surprise, regular reader of our blog and subscribers wont be surprised to see this as this is what we have been expecting/predicting since last few days.
Tuesday, when Nifty gave a closing at 10915, there was a small chance of market extending its gains and this corrective move extending on the upside for few more days(I had mentioned the same in my previous post 'Update for 2nd Jan' as well), however Bulls squandered away the opportunity or you may say that Bear came back with a vengeance and showed who is the boss right now.
Now the zone between 10640-10710 is extremely critical and has some solid support. It will be interesting to see if Bulls try to defend this zone. Silver lining for them is that this zone was not taken out today and market closed bang in the middle.
Technically speaking, we are still holding our old view that which says that G leg of diametric got over at 10922 and a new leg down has started now.(you may refer to my older posts for the wave counts). However we still need further evidence ( more weakness from here) to confirm the same though it doesn't mean that Nifty can not rise from here. Anything can happen in markets and if Nifty throw any surprises at us then we should be prepared for same. If required we will adjust our wave counts and charts ( like the way we have been doing in past).
Imp Thing: This is not the time to be adventurous, going forward the volatility might increase big time so keep the traded qty in check. I keep reiterating not to leverage or over trade in my daily whatsapp updates and blog posts. Going forward if there is a sharp rise in volatility (and the chances are it will) then it wont be a good situation for someone with a weak heart and leveraged trading position. Keep open position as light as possible and if you decide to book partial profits in between because you are not sure about carrying shorts then by all means please do that. There is nothing wrong in it. Don't be greedy, markets can turn choppy anytime now throwing you totally offguard.
Trading recommendations: Same as yesterday, I have been telling those holding longs to exit since Nifty hit 10900 and now we are at sub 10700 levels. If some one doesn't want to go short its fine, but don't hold any longs for time being.
We are holding shorts we initiated earlier @10840 and @10688 ( previous shorts initiated @ 10858 levels were covered @ 10535 earlier) and have been updating our subscribers through regular whats app updates as to what to expects and what needs to be done. If you wish to join us on whatsapp then please follow below link, its just a promotional offer and will soon be stopped.
http://niftywaveindia.blogspot.com/search/label/Announcement-Join%20us
Happy trading to you
Market update: Today, before the market opened, there was some hope among bulls that Nifty will be able to defend 10750-10800 levels ( Especially after overnight recovery in US stocks), however it was not to be. Nifty opened at par and kept on drifting down throughout the day and closed at 10670 level ( down 120 points). Its second consecutive day for Nifty where it has given 100+ point fall and in just 2 trading days Nifty has fallen from 10915 to 10670.
Even though the fall of last 2 days is sharp and has taken most bulls by surprise, regular reader of our blog and subscribers wont be surprised to see this as this is what we have been expecting/predicting since last few days.
Tuesday, when Nifty gave a closing at 10915, there was a small chance of market extending its gains and this corrective move extending on the upside for few more days(I had mentioned the same in my previous post 'Update for 2nd Jan' as well), however Bulls squandered away the opportunity or you may say that Bear came back with a vengeance and showed who is the boss right now.
Now the zone between 10640-10710 is extremely critical and has some solid support. It will be interesting to see if Bulls try to defend this zone. Silver lining for them is that this zone was not taken out today and market closed bang in the middle.
Technically speaking, we are still holding our old view that which says that G leg of diametric got over at 10922 and a new leg down has started now.(you may refer to my older posts for the wave counts). However we still need further evidence ( more weakness from here) to confirm the same though it doesn't mean that Nifty can not rise from here. Anything can happen in markets and if Nifty throw any surprises at us then we should be prepared for same. If required we will adjust our wave counts and charts ( like the way we have been doing in past).
Imp Thing: This is not the time to be adventurous, going forward the volatility might increase big time so keep the traded qty in check. I keep reiterating not to leverage or over trade in my daily whatsapp updates and blog posts. Going forward if there is a sharp rise in volatility (and the chances are it will) then it wont be a good situation for someone with a weak heart and leveraged trading position. Keep open position as light as possible and if you decide to book partial profits in between because you are not sure about carrying shorts then by all means please do that. There is nothing wrong in it. Don't be greedy, markets can turn choppy anytime now throwing you totally offguard.
Trading recommendations: Same as yesterday, I have been telling those holding longs to exit since Nifty hit 10900 and now we are at sub 10700 levels. If some one doesn't want to go short its fine, but don't hold any longs for time being.
We are holding shorts we initiated earlier @10840 and @10688 ( previous shorts initiated @ 10858 levels were covered @ 10535 earlier) and have been updating our subscribers through regular whats app updates as to what to expects and what needs to be done. If you wish to join us on whatsapp then please follow below link, its just a promotional offer and will soon be stopped.
http://niftywaveindia.blogspot.com/search/label/Announcement-Join%20us
Happy trading to you
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