Medium Term Trend: ↓Down ( up above 11640)
Weakness Continues: After a one day upmove markets returned to its bearish mode. Whole day it moved wildly between 11200 and 11300 and finally broke below 11200 in last half hour and closed at 11057 levels 65 points down.
After falling for 9 consecutive days markets yesterdays gave signs of some stabilization however today again the main trend returned. This raises the question if the bounce from 11100 was merely a technical bounce which got over today and markets are ready to move down again.
Like we mentioned yesterday, for immediate basis we need a move above 11300 levels for bullish options and a move below 11170-50 levels for bearish options to open again. Today markets have tested both ends and closed exactly at the lower end of the range which proves that the level mentioned by us are working and are actually important. If markets sustains below it tomorrow then probably 11100 will be tested again and this time the chances of markets breaking below it will be higher (so we don't recommend going long now at 11100 even for momentum or short term trading)
The way VIX is moving up everyday is pretty interesting too. Today it almost touched 29 (last time when VIX touched 29 it was way back in 2015 and at that time Nifty was around 7500-8000 levels).
For now the fall from 11850 is indeed looking like an impulsive move and Nifty need an equally stronger move on the upside to negate it so far the pullback we have seen is too short and looking like a corrective move ( but its too early to judge and we need to see more evidence).
Overall same view stands for now. Keep an eye on 11300 and 11150 levels ( and 11100 below that) for the immediate term movement as break on either side can lead to accelerated movement in Nifty
Happy Trading!
Weakness Continues: After a one day upmove markets returned to its bearish mode. Whole day it moved wildly between 11200 and 11300 and finally broke below 11200 in last half hour and closed at 11057 levels 65 points down.
After falling for 9 consecutive days markets yesterdays gave signs of some stabilization however today again the main trend returned. This raises the question if the bounce from 11100 was merely a technical bounce which got over today and markets are ready to move down again.
Like we mentioned yesterday, for immediate basis we need a move above 11300 levels for bullish options and a move below 11170-50 levels for bearish options to open again. Today markets have tested both ends and closed exactly at the lower end of the range which proves that the level mentioned by us are working and are actually important. If markets sustains below it tomorrow then probably 11100 will be tested again and this time the chances of markets breaking below it will be higher (so we don't recommend going long now at 11100 even for momentum or short term trading)
The way VIX is moving up everyday is pretty interesting too. Today it almost touched 29 (last time when VIX touched 29 it was way back in 2015 and at that time Nifty was around 7500-8000 levels).
For now the fall from 11850 is indeed looking like an impulsive move and Nifty need an equally stronger move on the upside to negate it so far the pullback we have seen is too short and looking like a corrective move ( but its too early to judge and we need to see more evidence).
Overall same view stands for now. Keep an eye on 11300 and 11150 levels ( and 11100 below that) for the immediate term movement as break on either side can lead to accelerated movement in Nifty
Happy Trading!
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