Near Term Trend: ↓ Down
Market update: Nifty opened with a small gap of ~20 points and kept trading in a small range before closing 20 points down at 11035 levels.
Today Asian markets opened weak however nifty once again bucked the trend and closed almost flat when most markets closed 1-2% down.
Nifty once again posted a 'Doji' candle 3rd day in a row. Like we said yesterday, this indecisiveness is warning caution specially considering that markets are above 11K levels.Nifty made a lower low and lower high today but we need a very sharp fall from these levels to confirm a new leg has started on the downside. Nifty needs to break below 10780 in next three days (preferably 2) to give a first signal that its ready to start a new leg on the downside. On the other hand if Nifty trades lacklusture ( avoid falling too much) for next couple of days then probably it can go and test 11100 levels once again too.
Technically the entire move we have been seeing since last 3 months ( from the lows of 10K) remains a complex corrective. Its developing as a double corrective where first corrective got over as 7 legged diametric and second corrective is now seems to be moving as ABC flat.Previously it seemed that the second corrective is developing as triangle however the implications for both the patterns are more or less same.
In nutshell, markets are at a very critical juncture and there is a high probability that this sideway trading or consolidation we are witnessing is pretty close to finishing ( it could just be a matter of days now). One needs to be cautious and carefully observe the market movement for next few days.
Happy Trading!!
Market update: Nifty opened with a small gap of ~20 points and kept trading in a small range before closing 20 points down at 11035 levels.
Today Asian markets opened weak however nifty once again bucked the trend and closed almost flat when most markets closed 1-2% down.
Nifty once again posted a 'Doji' candle 3rd day in a row. Like we said yesterday, this indecisiveness is warning caution specially considering that markets are above 11K levels.Nifty made a lower low and lower high today but we need a very sharp fall from these levels to confirm a new leg has started on the downside. Nifty needs to break below 10780 in next three days (preferably 2) to give a first signal that its ready to start a new leg on the downside. On the other hand if Nifty trades lacklusture ( avoid falling too much) for next couple of days then probably it can go and test 11100 levels once again too.
Technically the entire move we have been seeing since last 3 months ( from the lows of 10K) remains a complex corrective. Its developing as a double corrective where first corrective got over as 7 legged diametric and second corrective is now seems to be moving as ABC flat.Previously it seemed that the second corrective is developing as triangle however the implications for both the patterns are more or less same.
In nutshell, markets are at a very critical juncture and there is a high probability that this sideway trading or consolidation we are witnessing is pretty close to finishing ( it could just be a matter of days now). One needs to be cautious and carefully observe the market movement for next few days.
Happy Trading!!
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