Near Term Trend: ↓ Down
Market update: Nifty Opened with a gap down of 50 odd points which stretched to 150 points due to geopolitical tensions but an immediate buying spree erased all the losses & even pushed Nifty in green momentarily. Nifty finally closed a loss of 45 points at 10835.
We had mentioned yesterday that even though Nifty has put on 4 days of gain & has crossed 10850 levels, the entire rise or up move is appearing slow and we need to wait for one more day to see if markets can add any gain over and above yesterdays close. Today market just crumpled in initial hours which of course is being attributed to geopolitical tensions however technicals were already pointing to another leg down ( ref to the wave counts posted in yesterdays post).
So what next? The fact that Nifty erased most of the losses today and closed just 40 odd points down will be seen as positive by many. However we are seeing it as failure by markets to close above previous day high and add any significant gains. In other words market remains in 'down trend' and need another strong push. Merely recovering from day low is not good enough, markets need to add point above previous day close.
Both Sensex & Nifty made a Doji candle today, Doji signifies indecisiveness. When markets crashed 150 points bulls knew they needed to support and pushed markets back up but once it reached yesterdays close point and started trading flat, they were clueless and lacked the strength to carry it forward. If it was a strong market then it should have made a strong close today above 10900 levels.
Technically speaking, wave count remains same as posted yesterday and it remains to be seen if C leg has ended or still ongoing.
In summary, todays recovery action by bulls is marked as an indecisive act by bulls where they managed to pull back from day lows but lacked the strength to take it forward (It can still be done tomorrow).Bulls needs to reassert themselves very strongly from here, they might have succeeded in pulling markets from disaster zone but that is not enough. They need to deliver more and deliver fast else wont be surprised to see bears taking control of the markets once again.
Jai Hind,Bravo to Indian armed forces & happy Trading to you!!
Market update: Nifty Opened with a gap down of 50 odd points which stretched to 150 points due to geopolitical tensions but an immediate buying spree erased all the losses & even pushed Nifty in green momentarily. Nifty finally closed a loss of 45 points at 10835.
We had mentioned yesterday that even though Nifty has put on 4 days of gain & has crossed 10850 levels, the entire rise or up move is appearing slow and we need to wait for one more day to see if markets can add any gain over and above yesterdays close. Today market just crumpled in initial hours which of course is being attributed to geopolitical tensions however technicals were already pointing to another leg down ( ref to the wave counts posted in yesterdays post).
So what next? The fact that Nifty erased most of the losses today and closed just 40 odd points down will be seen as positive by many. However we are seeing it as failure by markets to close above previous day high and add any significant gains. In other words market remains in 'down trend' and need another strong push. Merely recovering from day low is not good enough, markets need to add point above previous day close.
Both Sensex & Nifty made a Doji candle today, Doji signifies indecisiveness. When markets crashed 150 points bulls knew they needed to support and pushed markets back up but once it reached yesterdays close point and started trading flat, they were clueless and lacked the strength to carry it forward. If it was a strong market then it should have made a strong close today above 10900 levels.
Technically speaking, wave count remains same as posted yesterday and it remains to be seen if C leg has ended or still ongoing.
In summary, todays recovery action by bulls is marked as an indecisive act by bulls where they managed to pull back from day lows but lacked the strength to take it forward (It can still be done tomorrow).Bulls needs to reassert themselves very strongly from here, they might have succeeded in pulling markets from disaster zone but that is not enough. They need to deliver more and deliver fast else wont be surprised to see bears taking control of the markets once again.
Jai Hind,Bravo to Indian armed forces & happy Trading to you!!
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