Near Term Trend: ↑UP
Market update: Nifty (again) opened strong at 11470 levels and went on to hit 11525 levels from where it dropped 100+ points to 11410 levels before a late bout of recovering pushed it back again to 11470 levels. Nifty finally closed at 10462 up 35 points.
Today was the 6th day in row where markets have closed in green. Nifty made a doji candle on intraday chart, it closed at same levels where it had opened after making a high and a low. So no real body just long shadows ( signifying indecisiveness)
If you analyse last 3 days of candle, you can see :
Day-1 Exhaustion gap- Mkts opened strong but couldn't sustain
Day-2 Inverted hammer - Mkts opened strong but gave up most of the gains in late trading
Day-3 Doji - Mkts again opened strong but immediately gave up all gains and couldn't conquer the morning highs inspite of some late buying.
This is reflecting some bit of apprehension and skepticism at higher levels. Nifty is very hot right now its trading in extremely overbought zone yet there is a feeling among traders that markets may just run up from here and they would miss the pre election rally hence lower levels continue to see some buying support for now.
In last post we had mentioned that Nifty need a strong close above 11485 levels to counter the bearish impact of inverted hammer. Markets did open strong but capitulated later and failed to give a closing above 11485 and in the process posted another Doji. So now Nifty needs a strong close above 11530 levels.
Today was the 97th Day of upmove and like we have been saying we are nearing 261.8% level of retracement ( time wise) hence next few trading sessions could be crucial, markets are getting overheated and a correction is definitely round the corner now ( small or big only time will tell).
Having said this the near term trend remains up but keep in mind due to various factors things can quickly change. So don't be complacent if you are long keep booking timely profits or keep a strict stoploss.
Happy Trading
Market update: Nifty (again) opened strong at 11470 levels and went on to hit 11525 levels from where it dropped 100+ points to 11410 levels before a late bout of recovering pushed it back again to 11470 levels. Nifty finally closed at 10462 up 35 points.
Today was the 6th day in row where markets have closed in green. Nifty made a doji candle on intraday chart, it closed at same levels where it had opened after making a high and a low. So no real body just long shadows ( signifying indecisiveness)
If you analyse last 3 days of candle, you can see :
Day-1 Exhaustion gap- Mkts opened strong but couldn't sustain
Day-2 Inverted hammer - Mkts opened strong but gave up most of the gains in late trading
Day-3 Doji - Mkts again opened strong but immediately gave up all gains and couldn't conquer the morning highs inspite of some late buying.
This is reflecting some bit of apprehension and skepticism at higher levels. Nifty is very hot right now its trading in extremely overbought zone yet there is a feeling among traders that markets may just run up from here and they would miss the pre election rally hence lower levels continue to see some buying support for now.
In last post we had mentioned that Nifty need a strong close above 11485 levels to counter the bearish impact of inverted hammer. Markets did open strong but capitulated later and failed to give a closing above 11485 and in the process posted another Doji. So now Nifty needs a strong close above 11530 levels.
Today was the 97th Day of upmove and like we have been saying we are nearing 261.8% level of retracement ( time wise) hence next few trading sessions could be crucial, markets are getting overheated and a correction is definitely round the corner now ( small or big only time will tell).
Having said this the near term trend remains up but keep in mind due to various factors things can quickly change. So don't be complacent if you are long keep booking timely profits or keep a strict stoploss.
Happy Trading
No comments:
Post a Comment