Near Term Trend: ↓ (Down)
Market update: Nifty opened slightly positive around 10795 levels made a high of 10819, low of 10733 and closed at 10800 levels up 30 points. On daily charts Nifty made a 'Doji' candle with a long down shadow. such a 'Doji' indicate indecisiveness with support at lower levels. 'Doji' occurs when both open and close point of day are roughly in same region.This shows though bulls are ready to support market at lower levels they are not ready to invest further beyond the opening prices.
Overall there is no change in Nifty view, and as per my view Nifty still remains in a bear trend. We need a strength from 10800+ levels & then 10900+ to signify bulls are getting stronger, till the time that happens we prefer sticking to bearish stance.
Compression of prices still continues in Nifty it may finish in a day or two or it may continue for few more days but not much time remaining now and nifty should give a breakout in either direction pretty soon (our preferred direction remains on the downside).
If you look at Nifty weekly charts you will notice that since last 7-8 weeks, Nifty is consistently hovering in a tight range of 10600-10900. For positional traders its a very difficult phase because markets are absolutely doing nothing and there is no clear trend emerging that's why its important to be patient and keep a calm head always. Whenever market gives a break out we should be ready for it. Such 'Nothing' phases are expected in markets ( especially when markets have already given a fall of 1700+ points in 6-7 weeks ( from High of 11750 to 10K levels). Just FYI (though its not mentioned on the blog) we were short around 11600 levels and covered our positions around 10500 previously so we can afford to be patient.
Technically speaking, still believe its a diametric pattern (Markets have not given me any reason to doubt it so far) and we should patiently wait for either for completion of this pattern or for markets to prove that its wrong.
Trading Recommendations: We covered our 1 part short today around 10767 levels in the morning, there were signs of consolidation continuing so we thought reducing some positions at this stage will be wiser ( Intraday Nifty went 50+ points from that point). For now we are only holding shorts initiated @10840 levels but wont hesitate to short again the moment we feel market is ready for a down move.
Market update: Nifty opened slightly positive around 10795 levels made a high of 10819, low of 10733 and closed at 10800 levels up 30 points. On daily charts Nifty made a 'Doji' candle with a long down shadow. such a 'Doji' indicate indecisiveness with support at lower levels. 'Doji' occurs when both open and close point of day are roughly in same region.This shows though bulls are ready to support market at lower levels they are not ready to invest further beyond the opening prices.
Overall there is no change in Nifty view, and as per my view Nifty still remains in a bear trend. We need a strength from 10800+ levels & then 10900+ to signify bulls are getting stronger, till the time that happens we prefer sticking to bearish stance.
Compression of prices still continues in Nifty it may finish in a day or two or it may continue for few more days but not much time remaining now and nifty should give a breakout in either direction pretty soon (our preferred direction remains on the downside).
If you look at Nifty weekly charts you will notice that since last 7-8 weeks, Nifty is consistently hovering in a tight range of 10600-10900. For positional traders its a very difficult phase because markets are absolutely doing nothing and there is no clear trend emerging that's why its important to be patient and keep a calm head always. Whenever market gives a break out we should be ready for it. Such 'Nothing' phases are expected in markets ( especially when markets have already given a fall of 1700+ points in 6-7 weeks ( from High of 11750 to 10K levels). Just FYI (though its not mentioned on the blog) we were short around 11600 levels and covered our positions around 10500 previously so we can afford to be patient.
Technically speaking, still believe its a diametric pattern (Markets have not given me any reason to doubt it so far) and we should patiently wait for either for completion of this pattern or for markets to prove that its wrong.
Trading Recommendations: We covered our 1 part short today around 10767 levels in the morning, there were signs of consolidation continuing so we thought reducing some positions at this stage will be wiser ( Intraday Nifty went 50+ points from that point). For now we are only holding shorts initiated @10840 levels but wont hesitate to short again the moment we feel market is ready for a down move.
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