Near Term Trend: ↓ Down
Market update: Nifty Opened with a slight gap and maintained the gap through out the day and closed strongly at 11050 levels up 60 points.
Nifty has given a good follow up above yesterdays huge rally however today the highest point was hit in first 30 mins of trading and entire day market traded below that only ( it was breached momentarily only in last few minutes) in the process Nifty made a doji like candle. The entire rise from 10585 levels is lacking impulse and thus remains a pullback or corrective move. All corrective moves ends sooner or later and the move which follows after that is usually a trending move.
Like we mentioned yesterday, today was the 10th day of this pullback and we are still sitting below previous high (11118) which is not giving enough confidence about the sustainability of this upmove. Now this may still stretch a bit more from here but its not going to be easy.
Pull back from 10585 lows is clearly looking like an A-B-C corrective move which is in its last leg ( C). Today C has almost achieved equality with A leg price wise as well as time wise.C leg can stretch a bit more and become bigger than A leg but considering the fact that it remains a part of bigger triangle/corrective it should not stretch much beyond here.
We have been saying that overall corrective and range bound markets we have been seeing is about to end and markets are likely to move in a strong trend soon. Now this is evident from the fact that open interest position in Nifty future is at record low. Total OI is sitting at less than 1.5crore ( usual average is 2.5-3 crore so its almost 50% of that). Now this clearly explains that most traders are out of market. Last 2-3 months have been a difficult month for traders and it seems most are tired of waiting for a breakout or getting stopped out in wild swings. With such low OI positions, markets are trading very light and Nifty can move strongly (in either direction).
Happy Trading!!
Market update: Nifty Opened with a slight gap and maintained the gap through out the day and closed strongly at 11050 levels up 60 points.
Nifty has given a good follow up above yesterdays huge rally however today the highest point was hit in first 30 mins of trading and entire day market traded below that only ( it was breached momentarily only in last few minutes) in the process Nifty made a doji like candle. The entire rise from 10585 levels is lacking impulse and thus remains a pullback or corrective move. All corrective moves ends sooner or later and the move which follows after that is usually a trending move.
Like we mentioned yesterday, today was the 10th day of this pullback and we are still sitting below previous high (11118) which is not giving enough confidence about the sustainability of this upmove. Now this may still stretch a bit more from here but its not going to be easy.
Pull back from 10585 lows is clearly looking like an A-B-C corrective move which is in its last leg ( C). Today C has almost achieved equality with A leg price wise as well as time wise.C leg can stretch a bit more and become bigger than A leg but considering the fact that it remains a part of bigger triangle/corrective it should not stretch much beyond here.
We have been saying that overall corrective and range bound markets we have been seeing is about to end and markets are likely to move in a strong trend soon. Now this is evident from the fact that open interest position in Nifty future is at record low. Total OI is sitting at less than 1.5crore ( usual average is 2.5-3 crore so its almost 50% of that). Now this clearly explains that most traders are out of market. Last 2-3 months have been a difficult month for traders and it seems most are tired of waiting for a breakout or getting stopped out in wild swings. With such low OI positions, markets are trading very light and Nifty can move strongly (in either direction).
Happy Trading!!
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