Near Term Trend: ↓ (Down)
Market update: Nifty opened on a very strong note above 10800 levels but couldn't sustain the momentum and late profit booking dragged index to around 10750 levels & it final closed at 10770 up 40 points. At one point of time Nifty was 100+ up but gave up more than 50% of its gain.
When Dow was 700 down Nifty was 50 point up ( Friday) now that Dow was 700 point up, Nifty could add up only 40 points. So one should not look at Dow and then take a position in Nifty. Having said that, I am of opinion that Nifty has been outperforming Dow for quite some time now however I don't think this will last for much longer. Soon we might have a situation where Nifty start underperforming Dow. anyways, we will cross that bridge when we get there.
We have been saying that overall Nifty remain in a downtrend and intermittent pull backs will keep coming and one should not attach too much importance to them. Even today when Nifty was trading at 100 points up, we had mentioned in our whatsapp updates that Nifty remains in a downtrend and this gap up opening/pullback doesn't change anything.
Extremely critical Juncture: I had mentioned in my previous post that support area for Nifty is rising and is compressing the price action. Now one can see even the resistance area is compressing (first it was 10980 then 10920 and today it was 10830). Support area moving up and resistance area moving down is compressing Nifty action from 2 sides. Once this compression completes (and not much time is remaining for same), Nifty will explode ( up or down). I am of opinion that it will explode in a bearish trend however markets can prove me wrong so the bullish option stays open too (though its not my preferred scenario under current circumstances).
Technically speaking, Nifty is still in its last leg of diametric pattern. This compression is very symptomatic or indicative of final legs of Diametric and that's the reason I feel we might see a downward movement in Nifty. What we are seeing in market is clear sign of distribution and index management ( where only few heavy weight stocks are holding index). Many readers are asking me to put an overall long term wave count of Nifty and I will surely do that once I get time. For now we need to concern ourselves with near term movement of Nifty ( trust me its going to be extremely interesting).
Trading recommendations: Still holding the balance shorts for now and will square off or add more shorts depending on which way we feel market is moving in. Once again I suggest not to trade big, volatility can increase anytime and will chop you hands off if you are not careful.
If you wish to join us on whatsapp for nil charges/free then please follow below link, its just a promotional offer and will be stopped in couple of days time
http://niftywaveindia.blogspot.com/search/label/Announcement-Join%20us
Market update: Nifty opened on a very strong note above 10800 levels but couldn't sustain the momentum and late profit booking dragged index to around 10750 levels & it final closed at 10770 up 40 points. At one point of time Nifty was 100+ up but gave up more than 50% of its gain.
When Dow was 700 down Nifty was 50 point up ( Friday) now that Dow was 700 point up, Nifty could add up only 40 points. So one should not look at Dow and then take a position in Nifty. Having said that, I am of opinion that Nifty has been outperforming Dow for quite some time now however I don't think this will last for much longer. Soon we might have a situation where Nifty start underperforming Dow. anyways, we will cross that bridge when we get there.
We have been saying that overall Nifty remain in a downtrend and intermittent pull backs will keep coming and one should not attach too much importance to them. Even today when Nifty was trading at 100 points up, we had mentioned in our whatsapp updates that Nifty remains in a downtrend and this gap up opening/pullback doesn't change anything.
Extremely critical Juncture: I had mentioned in my previous post that support area for Nifty is rising and is compressing the price action. Now one can see even the resistance area is compressing (first it was 10980 then 10920 and today it was 10830). Support area moving up and resistance area moving down is compressing Nifty action from 2 sides. Once this compression completes (and not much time is remaining for same), Nifty will explode ( up or down). I am of opinion that it will explode in a bearish trend however markets can prove me wrong so the bullish option stays open too (though its not my preferred scenario under current circumstances).
Technically speaking, Nifty is still in its last leg of diametric pattern. This compression is very symptomatic or indicative of final legs of Diametric and that's the reason I feel we might see a downward movement in Nifty. What we are seeing in market is clear sign of distribution and index management ( where only few heavy weight stocks are holding index). Many readers are asking me to put an overall long term wave count of Nifty and I will surely do that once I get time. For now we need to concern ourselves with near term movement of Nifty ( trust me its going to be extremely interesting).
Trading recommendations: Still holding the balance shorts for now and will square off or add more shorts depending on which way we feel market is moving in. Once again I suggest not to trade big, volatility can increase anytime and will chop you hands off if you are not careful.
If you wish to join us on whatsapp for nil charges/free then please follow below link, its just a promotional offer and will be stopped in couple of days time
http://niftywaveindia.blogspot.com/search/label/Announcement-Join%20us
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