Medium Term Trend: ↑UP( down below 11250)
Up Up & Away: Nifty had a spectacular run today, it opened strong at 11700 and just momentarily dropped to 11600 levels but soon recovered and didn't look back. It closed up at 11830 leaves up 420 points.
Nifty had taken around 8 trading sessions to drop from 11800 levels to 11108 and the entire fall was pretty fast and was even looking like a trend reversal to many and now the entire fall has been fully retraced in 50% of the time ( just 4 days) i.e, with double speed. Also, on its way down Nifty had been constantly losing open interest which we had pointed out in previous post as well and when markets are light they find it easy to move up ( generally big falls are not observed when markets are so light).
So is it safe to assume that fall to 11108 was just a correction and markets are now ready to move up? Answer is of course it is. Market has not left even a tiniest bit of doubt now & everything is indicating that market is ready to move up. Now there is no 100% surety of anything but as far as I can see, tables have turned today and unless 11600 level is broken I doubt we will see any big fall from here.
Just one caution, due to todays mammoth rally markets have turned overbought on short term charts hence some amount of consolidation/sideways movement and volatility can not be ruled out. Election results are still not out so expect markets to remain choppy for now.
Nut shell, market trend has changed to up now and unless we see a quick , sharp and massive reversal , it will remain up at the same time choppiness is likely to continue for some more time because of overbought conditions so trade with a proper SL.
Happy Trading.
Up Up & Away: Nifty had a spectacular run today, it opened strong at 11700 and just momentarily dropped to 11600 levels but soon recovered and didn't look back. It closed up at 11830 leaves up 420 points.
Nifty had taken around 8 trading sessions to drop from 11800 levels to 11108 and the entire fall was pretty fast and was even looking like a trend reversal to many and now the entire fall has been fully retraced in 50% of the time ( just 4 days) i.e, with double speed. Also, on its way down Nifty had been constantly losing open interest which we had pointed out in previous post as well and when markets are light they find it easy to move up ( generally big falls are not observed when markets are so light).
So is it safe to assume that fall to 11108 was just a correction and markets are now ready to move up? Answer is of course it is. Market has not left even a tiniest bit of doubt now & everything is indicating that market is ready to move up. Now there is no 100% surety of anything but as far as I can see, tables have turned today and unless 11600 level is broken I doubt we will see any big fall from here.
Just one caution, due to todays mammoth rally markets have turned overbought on short term charts hence some amount of consolidation/sideways movement and volatility can not be ruled out. Election results are still not out so expect markets to remain choppy for now.
Nut shell, market trend has changed to up now and unless we see a quick , sharp and massive reversal , it will remain up at the same time choppiness is likely to continue for some more time because of overbought conditions so trade with a proper SL.
Happy Trading.
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