Medium Term Trend: ↓Down ( up above 11640)
Market update: Nifty continued with its bearish trend ( 7th day in a row) and dropped to 11250 levels before closing at 11301 (down 55 points).
We had mentioned yesterday that Nifty has a support around 11350-375 ( yesterdays low/close area) and if its taken out then we are headed straight to 11220 levels. Nifty made a low of 11250 levels before giving a small bounce of around 100 points but it couldn't sustain it and again dropped 50 points from there.
Market trend remains down and all technical indicators on most time frames have now turned negative or bearish. Having said this markets have now reached an oversold territory and given the fact that markets have been falling from last 7 days, some amount of short covering or a pullback cannot be ruled out.
Nifty has some good support at 11220 levels and today it came very near to it . At the time of writing this post, Dow is down by a whopping 400 points so probably Nifty is going to open again in red tomorrow.
So nothing much to add, Market remains in a strong bear grip but a tad oversold so shorting around current levels is not recommended. One should wait for a pullback and short only when pullback gives sign of reversing. Keep an eye of 11220-11200 levels for immediate support.
Happy Trading!
Market update: Nifty continued with its bearish trend ( 7th day in a row) and dropped to 11250 levels before closing at 11301 (down 55 points).
We had mentioned yesterday that Nifty has a support around 11350-375 ( yesterdays low/close area) and if its taken out then we are headed straight to 11220 levels. Nifty made a low of 11250 levels before giving a small bounce of around 100 points but it couldn't sustain it and again dropped 50 points from there.
Market trend remains down and all technical indicators on most time frames have now turned negative or bearish. Having said this markets have now reached an oversold territory and given the fact that markets have been falling from last 7 days, some amount of short covering or a pullback cannot be ruled out.
Nifty has some good support at 11220 levels and today it came very near to it . At the time of writing this post, Dow is down by a whopping 400 points so probably Nifty is going to open again in red tomorrow.
So nothing much to add, Market remains in a strong bear grip but a tad oversold so shorting around current levels is not recommended. One should wait for a pullback and short only when pullback gives sign of reversing. Keep an eye of 11220-11200 levels for immediate support.
Happy Trading!
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