Tuesday, April 9, 2019

Nifty Outlook and Trend for 10th Apr 2019

Near Term Trend: (Up) 

Market update: Nifty opened below 11600 levels but failed to break below 11550 levels. Encouraged by lack of selling pressure, bulls pulled Nifty smartly and it closed at 11670 levels ( up 70 points).
Yesterday we had mentioned that bulls need a strong push soon else there is a chance of bears taking over. We did see a smart pull today and though Nifty did not cross above 11700 levels there are few indicators ( including  the fact that entire fall from 11760 has too many overlapping waves) which are probably suggesting that sideway or neutral trend we have been witnessing for last 5-6 days is over for now and probably Nifty is ready for another thrust or move on the up side.
Overall this remains a corrective move and the criteria mentioned in previous post ( High PE ratio etc) still stand however the most important indicator ( I.e, price) is again pointing to another move on the upside. Market has already spent 4 days after hitting 11760 and we are only less than 100 points below it. So if it was actually a bear move, then we should have seen a strong move on the downside by now ( which didn't happen). So for now we believe trend has once again changed to 'UP' and probably Nifty would wants to give another shot at hitting new all time highs.
If markets again break below 11600 and then goes on to break below 11550 levels then the immediate trend will again change. 
Happy Trading!

No comments:

Post a Comment