Medium Term Trend: ↑(Up)
Market update: Nifty had a pretty bad day today, it opened weak @ 11680 levels and kept trading weak through out the day and finally closed at 11595 levels down 150 points.
We had mentioned in previous post that Nifty had made a "bearish belt hold pattern" and it can have strong bearish implications going forward. Well we didn't have to wait for too long and the weakness surfaced next day (today) itself and caught most traders by surprise. We had also been mentioning that overall Nifty seems overstretched and it can reverse sharply anytime and without any warning.
Nifty has fallen around 250 points in 2 days (from high of 11850 levels) and the fall has been pretty sharp however there is still some hope for bulls if Nifty can sustain 11550 levels. It had taken Nifty 4 days to rise from 11540 to 11850 and in just one day it has retraced around 75% already. Now if Nifty can hold above 11550 for next 2-3 trading session then there is still hope for Nifty going above 11850 levels again, however if 11540 level is taken out by bears then there is a serious risk of this uptrend getting over (for now). Sustained trading below 11540 wont be good for market in medium/near term.
Entire move from 10600 to 11850 levels needs to be corrected by market and till now this correction is pending (even if the overall trend is bullish a correction should still come). If 11540 is broken then probably we can assume the correction has begun now. Markets short term trend had changed to 'down' on Thursday and all long positions should have been exited on Thursday itself however if someone is still holding longs then keep a tight stop loss of 11540. Fresh long should only be initiated above 11720-730 levels now. Don't be tempted to buy Nifty even if holds near 11550 level for some time ( it may be another bull trap).
In summary, there is a real possibility that near term top has been posted by Nifty at 11850 levels, confirmation will come once 11500-11540 levels is taken out in next 2-3 days. If this level sustains then there is still some hope for bulls and a chance of Nifty taking another shot at 11900 levels.
To join us for daily/ real time whatsapp updates :- http://niftywaveindia.blogspot.com/2019/02/join-us-on-whatsapp-how-to-subscribe.html
Happy Trading!!
We had mentioned in previous post that Nifty had made a "bearish belt hold pattern" and it can have strong bearish implications going forward. Well we didn't have to wait for too long and the weakness surfaced next day (today) itself and caught most traders by surprise. We had also been mentioning that overall Nifty seems overstretched and it can reverse sharply anytime and without any warning.
Nifty has fallen around 250 points in 2 days (from high of 11850 levels) and the fall has been pretty sharp however there is still some hope for bulls if Nifty can sustain 11550 levels. It had taken Nifty 4 days to rise from 11540 to 11850 and in just one day it has retraced around 75% already. Now if Nifty can hold above 11550 for next 2-3 trading session then there is still hope for Nifty going above 11850 levels again, however if 11540 level is taken out by bears then there is a serious risk of this uptrend getting over (for now). Sustained trading below 11540 wont be good for market in medium/near term.
Entire move from 10600 to 11850 levels needs to be corrected by market and till now this correction is pending (even if the overall trend is bullish a correction should still come). If 11540 is broken then probably we can assume the correction has begun now. Markets short term trend had changed to 'down' on Thursday and all long positions should have been exited on Thursday itself however if someone is still holding longs then keep a tight stop loss of 11540. Fresh long should only be initiated above 11720-730 levels now. Don't be tempted to buy Nifty even if holds near 11550 level for some time ( it may be another bull trap).
In summary, there is a real possibility that near term top has been posted by Nifty at 11850 levels, confirmation will come once 11500-11540 levels is taken out in next 2-3 days. If this level sustains then there is still some hope for bulls and a chance of Nifty taking another shot at 11900 levels.
To join us for daily/ real time whatsapp updates :- http://niftywaveindia.blogspot.com/2019/02/join-us-on-whatsapp-how-to-subscribe.html
Happy Trading!!
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