Friday, March 1, 2019

Nifty Outlook and Trend for 5th Mar 2019

Near Term Trend: Down

Market update: Nifty again opened strong around 10850 levels and traded in a very narrow range between 10820-10870 and finally closed at 10863, up 70 points.

Today was the 8th day for Nifty ( from the lows of 10585) and it has managed to close at 10860 levels which is around 50% retracement level. 50% fall retraced in 100% of time which is very very slow. Do keep in mind that previous fall from 11118 to 10585 was slow too, so a slower fall is being retraced by an even slower up move. Therefore, inspite of a positive and strong close the trend remains down for now.

Market continues to be sluggish and need a very strong thrust on the upside to break the current trend else there are chances of market going down and testing 10700-10600 levels once again. Like we mentioned previously, the current movement is looking like a triangle ( evidence is coming from the fact that upside legs and downside legs are carrying same characteristics so most probably these are part of same pattern and not different ones).

Next couple of days could be crucial for market as todays up move was built on +ve sentiments like easing of geopolitical uncertainties and strong global clues also during market hours Dow future was trading up+150 points. Now markets needs a strong follow up above todays high & then 10900-11K levels in next 2-3 days to show that its ready to move up. Overall the breadth of market remain positive (advance: decline was at 40:10) and has been positive for last few days ( ever since we touched 10585).

Technically too there is no change in view/wave count and we still maintain the same view and still believe that range bound markets we are witnessing are about to come to end pretty soon & trending move is likely to resume soon and once it starts and you don't act fast then you are likely to miss it. So be watchful and keep your eyes open.

Happy Trading!!



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