Short/Near Term Trend: ↓(Down)
Medium Term Trend: ↑(Up)
Market update: Nifty had a sluggish day today and after moving in tight range of 11550-600 it closed at 11595 up 10 odd points.
Yesterday we had mentioned that Nifty even though is slipping daily, the fall is too slow and looking like a corrective move. We needed a strong bearish move to change the medium term to down however what we had was another flattish sort of a day.
Nifty needs to move below 11320 by Friday to signal start of a fresh down move . Now since it is more than 250 points away with just one trading day remaining chances of Nifty taking another shot at lifetimes high has increased a little ( unless Nifty makes a truncated/failure top below 11760).
On the upside we need a move above 11670-11700 levels to confirm that last 6 days corrective move is over now. Overall the medium market trend remains up/bullish but the near term trend remains down (in contradiction to each other) hence the sideways movement continues in Nifty.
On daily charts the fall from 11760-11550 has generated positive divergence on the charts. Daily RSI is not at all supporting this down move ( but like we saw previously both negative and positive divergence can continue for long. It just a indicator but not a conclusive one).
In nutshell, not much change in view, Nifty continues to trade around at a level where there is strong probability of markets making a near term top but the current price movement suggesting that probably some more upside movement is still remaining and Nifty might move a little more on the upside before top is formed. 11320 on the downside and 11700 on the upside remains critical levels to watch out for now.
Happy Trading!
Medium Term Trend: ↑(Up)
Market update: Nifty had a sluggish day today and after moving in tight range of 11550-600 it closed at 11595 up 10 odd points.
Yesterday we had mentioned that Nifty even though is slipping daily, the fall is too slow and looking like a corrective move. We needed a strong bearish move to change the medium term to down however what we had was another flattish sort of a day.
Nifty needs to move below 11320 by Friday to signal start of a fresh down move . Now since it is more than 250 points away with just one trading day remaining chances of Nifty taking another shot at lifetimes high has increased a little ( unless Nifty makes a truncated/failure top below 11760).
On the upside we need a move above 11670-11700 levels to confirm that last 6 days corrective move is over now. Overall the medium market trend remains up/bullish but the near term trend remains down (in contradiction to each other) hence the sideways movement continues in Nifty.
On daily charts the fall from 11760-11550 has generated positive divergence on the charts. Daily RSI is not at all supporting this down move ( but like we saw previously both negative and positive divergence can continue for long. It just a indicator but not a conclusive one).
In nutshell, not much change in view, Nifty continues to trade around at a level where there is strong probability of markets making a near term top but the current price movement suggesting that probably some more upside movement is still remaining and Nifty might move a little more on the upside before top is formed. 11320 on the downside and 11700 on the upside remains critical levels to watch out for now.
Happy Trading!
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