Near Term Trend:↔(Neutral/Upswing maturing?)
Market update: Nifty had another weak session inspite of RBI cutting rate by 25 basis points and it slipped to sub 11550 levels and closed down 40 points @ 11600.
For now weakness continues and yesterday we had mentioned that the fall which was seen today has halted the uptrend of markets for the time being. However it doesn't mean that downtrend has begun, overall Trend as per us remain neutral for now(no mans land). We have also been mentioning a possibility of market making a near term top here and it still remains a possibility.
Few days back when markets had corrected from 11550 levels and touched 11320, it had taken 2 days and it is observed that any correction ( downside or upside) against a strong trend usually last for 2-3 trading sessions and after that the main trend resumes. Today was the second day so it remains to be seen if markets attempts to take a support around 11550 levels tomorrow and try to test 11750 levels again.
Today was a classic example of 'buy on rumour sell on news'. Nifty was seeing a positive movement since last few days expecting rate cuts from RBI , now after the event has passed , some amount of profit booking was seen. Now there was no trigger remaining in near terms for bulls to continue holding position and it seems they decided to book some profits. Now it will be interesting to see if the profit booking continues or the uptrend resumes once again. For bears to take control of markets strong follow up selling is required below todays low. Nifty now has good support at 11350-400 levels and until these levels are taken out, trend will remain Neutral. On the other hand strong close above 11700 levels now will firmly put markets back on track and uptrend once again will resume.
Technically we continue to believe that entire rise from 10K levels ( last 5-6 months) is a corrective move and it has taken markets > 280% of time to break above previous high, this is not a sign of strong markets but a weak market. Now the corrective move may extend from here ( which will force us to change our wave counts) but there also remains a possibility that its already over hence if someone is looking to buy then he should enter only once 11700 level is reclaimed by bulls. Below 11700 bulls are weak and are prone to an attack by Bears.
Happy Trading!
Market update: Nifty had another weak session inspite of RBI cutting rate by 25 basis points and it slipped to sub 11550 levels and closed down 40 points @ 11600.
For now weakness continues and yesterday we had mentioned that the fall which was seen today has halted the uptrend of markets for the time being. However it doesn't mean that downtrend has begun, overall Trend as per us remain neutral for now(no mans land). We have also been mentioning a possibility of market making a near term top here and it still remains a possibility.
Few days back when markets had corrected from 11550 levels and touched 11320, it had taken 2 days and it is observed that any correction ( downside or upside) against a strong trend usually last for 2-3 trading sessions and after that the main trend resumes. Today was the second day so it remains to be seen if markets attempts to take a support around 11550 levels tomorrow and try to test 11750 levels again.
Today was a classic example of 'buy on rumour sell on news'. Nifty was seeing a positive movement since last few days expecting rate cuts from RBI , now after the event has passed , some amount of profit booking was seen. Now there was no trigger remaining in near terms for bulls to continue holding position and it seems they decided to book some profits. Now it will be interesting to see if the profit booking continues or the uptrend resumes once again. For bears to take control of markets strong follow up selling is required below todays low. Nifty now has good support at 11350-400 levels and until these levels are taken out, trend will remain Neutral. On the other hand strong close above 11700 levels now will firmly put markets back on track and uptrend once again will resume.
Technically we continue to believe that entire rise from 10K levels ( last 5-6 months) is a corrective move and it has taken markets > 280% of time to break above previous high, this is not a sign of strong markets but a weak market. Now the corrective move may extend from here ( which will force us to change our wave counts) but there also remains a possibility that its already over hence if someone is looking to buy then he should enter only once 11700 level is reclaimed by bulls. Below 11700 bulls are weak and are prone to an attack by Bears.
Happy Trading!
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