Near Term Trend: ↑ (UP)
Market update: Nifty had a roller coaster of a day ( as expected on a budget day). It opened positively above yesterdays high of 10830 and kept trading at 10860 levels for some time after opening and shot to 10984 levels around midday. Bears remember 10980 levels pretty well so they became active arond it and pushed Nifty back to 10820 levels. Bulls again came to rescue and pushed nifty back to 10900 levels. Overall it was a good day for bulls and markets finally closed 75 points up at 10893 levels.
Yesterday we had mentioned that rally we saw carries lots of significance and importance and if Nifty can sustain/trade above 10830 levels then it will probably mark the start of a new trend on the upside. Momentum and force we saw yesterday has the capability of pushing nifty to much higher levels.
Overall Market has been frustrating and 'tiring out' traders since last one month with no directional moves. We call it ' headless chicken' market. Such markets are there to serve just one purpose i.e. throw traders out so that when the actual trending move take place every trader is tired already and afraid to take a trading position. Every now and then one can see such period , they are indeed frustrating but help markets clean up the froth and get rid of weak trading hands. I gave an example of June'2018 when we saw similar actions ( interestingly levels were similar too).
I have been mentioning three possibilities since last couple of days a) either market has started a new leg down or b) its just an X wave ( post which market will again start moving up) c) or its an extension of 'G' leg which is developing as an 'irregular correction'. I mentioned yesterday that option (c) is looking more probable. Option (a) is bearish whereas option (b) & (c) are bullish. Now after seeing todays we are reasonably sure that its option (c) or (b) and that's the reason we have changed the near term scenario to up. Please note probably this is the first time in last many weeks when we have changed the trend to 'up'.
Markets will continue to be volatile and will not be easy to trade going forward. Having said this 'going long' is the only logical trade one should get in from now on. But do keep in mind the high volatility. Today markets fell from 10980 to 10820 so one needs to be tough mentally, be patient and keep a very calm head while trading in such markets at the same time one cannot keep holding the position indefinitely and risk running into huge losses. So every trade has to be properly managed.
We keep guiding and advising our subscribers through regular intraday 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
Have a Nice weekend!
Market update: Nifty had a roller coaster of a day ( as expected on a budget day). It opened positively above yesterdays high of 10830 and kept trading at 10860 levels for some time after opening and shot to 10984 levels around midday. Bears remember 10980 levels pretty well so they became active arond it and pushed Nifty back to 10820 levels. Bulls again came to rescue and pushed nifty back to 10900 levels. Overall it was a good day for bulls and markets finally closed 75 points up at 10893 levels.
Yesterday we had mentioned that rally we saw carries lots of significance and importance and if Nifty can sustain/trade above 10830 levels then it will probably mark the start of a new trend on the upside. Momentum and force we saw yesterday has the capability of pushing nifty to much higher levels.
Overall Market has been frustrating and 'tiring out' traders since last one month with no directional moves. We call it ' headless chicken' market. Such markets are there to serve just one purpose i.e. throw traders out so that when the actual trending move take place every trader is tired already and afraid to take a trading position. Every now and then one can see such period , they are indeed frustrating but help markets clean up the froth and get rid of weak trading hands. I gave an example of June'2018 when we saw similar actions ( interestingly levels were similar too).
I have been mentioning three possibilities since last couple of days a) either market has started a new leg down or b) its just an X wave ( post which market will again start moving up) c) or its an extension of 'G' leg which is developing as an 'irregular correction'. I mentioned yesterday that option (c) is looking more probable. Option (a) is bearish whereas option (b) & (c) are bullish. Now after seeing todays we are reasonably sure that its option (c) or (b) and that's the reason we have changed the near term scenario to up. Please note probably this is the first time in last many weeks when we have changed the trend to 'up'.
Markets will continue to be volatile and will not be easy to trade going forward. Having said this 'going long' is the only logical trade one should get in from now on. But do keep in mind the high volatility. Today markets fell from 10980 to 10820 so one needs to be tough mentally, be patient and keep a very calm head while trading in such markets at the same time one cannot keep holding the position indefinitely and risk running into huge losses. So every trade has to be properly managed.
We keep guiding and advising our subscribers through regular intraday 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
Have a Nice weekend!
No comments:
Post a Comment