Near Term Trend: ↑UP
Market update: Nifty had another positive day today (7th in a row). After trading in a narrow range throughout the day it jumped above 11500 levels and closed at 11530 (up 70 points).
Markets yesterday had posted a Doji and needed a strong close above it today to negate its impact. While Nifty managed to close above it just by couple of points , Sensex failed to do it & the close is still below the high of Doji it posted yesterday.
Daily RSI has crossed 79 today & markets keep getting more and more overbought. Sentiments are turning bullish and Nifty OI has been seeing a steady increase in last few days ( now back to 2 crore+). Having said this the price movement is not giving any negative indications and all momentum indicators continues to be on 'buy side'. Goldman sachs upgraded Indian markets to 'overweight' which has added to positive sentiments.
Till the time price movements gives any sell signal it will be premature to say if this rally has finished. Hence near term trend continues to remain up however this is the time to be super cautious as markets can give a sharp pullback ( even if its just a temp correction) anytime. If some one is looking to buy then it would be wise to buy on dips only, let markets corrects itself and then buy. Markets never move up or down in a straight like they always move in a zig zag fashion and once you see markets moving like a straight line for a considerable amount of time then you can always expect a course correction.
We continue to trade near very critical levels and today it was 98th day of the entire move ( from lows of 10K) in next 1-2 days we will complete 261.8% retracement (time wise).So if this entire move is just a corrective move ( which it seems like) then next couple of days could be crucial. Sentiments are turning into super bullish (especially after Goldman Sachs upgrade) which is further warning cautions at current levels.
Happy Trading!
Market update: Nifty had another positive day today (7th in a row). After trading in a narrow range throughout the day it jumped above 11500 levels and closed at 11530 (up 70 points).
Markets yesterday had posted a Doji and needed a strong close above it today to negate its impact. While Nifty managed to close above it just by couple of points , Sensex failed to do it & the close is still below the high of Doji it posted yesterday.
Daily RSI has crossed 79 today & markets keep getting more and more overbought. Sentiments are turning bullish and Nifty OI has been seeing a steady increase in last few days ( now back to 2 crore+). Having said this the price movement is not giving any negative indications and all momentum indicators continues to be on 'buy side'. Goldman sachs upgraded Indian markets to 'overweight' which has added to positive sentiments.
Till the time price movements gives any sell signal it will be premature to say if this rally has finished. Hence near term trend continues to remain up however this is the time to be super cautious as markets can give a sharp pullback ( even if its just a temp correction) anytime. If some one is looking to buy then it would be wise to buy on dips only, let markets corrects itself and then buy. Markets never move up or down in a straight like they always move in a zig zag fashion and once you see markets moving like a straight line for a considerable amount of time then you can always expect a course correction.
We continue to trade near very critical levels and today it was 98th day of the entire move ( from lows of 10K) in next 1-2 days we will complete 261.8% retracement (time wise).So if this entire move is just a corrective move ( which it seems like) then next couple of days could be crucial. Sentiments are turning into super bullish (especially after Goldman Sachs upgrade) which is further warning cautions at current levels.
Happy Trading!
No comments:
Post a Comment