Medium Term Trend: ↑UP (down below 11400)
Another Strong Day: Nifty opened slightly weak at around 10830 levels but immediately started moving up. It hit a intraday high of 11957 & closed at 11925, up 75 points.
Nifty had a good resistance at 11875-11900 zone which it crossed today. We have had one successful close above 11900 zone need to see if Nifty can sustain above this level in the next couple of session as well. Sustaining above 11900 level will be a sign of strength however 11950-11975 is another very strong resistance zone. Nifty almost touched 11960 today so sustained trading above todays high is required to push Nifty higher.
In last post we had mentioned a possibility of a bearish extracting triangle which can have negative implications for short term. That possibility still stands and markets appears to be in E leg ( last leg) of extracting triangle. If you notice all directional legs ( i.e, A, C & E) the A leg measured around 750 points ( 11108 to 11850), C leg measured around 360 points ( 11680 to 12040) and E leg has measured around 343 ( 11614 to 11957) today. So as of today, the current leg remains smaller than previous leg. (Rallies are getting shorter and falls are getting bigger). This pattern will be negated once Nifty crosses 11970-11975 levels.
Also, 12K strike levels continue to have a massive buildup of OI in calls so probably Nifty will find it a bit tough to move above 12K before expiry atleast. Other than that, for medium term the trend remains up and will remain up as long as the gap we saw after exit poll results ( 11420-11600) is not filled.
In nutshell, market trend remains up but be careful & cautious in 11900-980 zone because of expiry related and other technical factors mentioned above.
Happy Trading!
Another Strong Day: Nifty opened slightly weak at around 10830 levels but immediately started moving up. It hit a intraday high of 11957 & closed at 11925, up 75 points.
Nifty had a good resistance at 11875-11900 zone which it crossed today. We have had one successful close above 11900 zone need to see if Nifty can sustain above this level in the next couple of session as well. Sustaining above 11900 level will be a sign of strength however 11950-11975 is another very strong resistance zone. Nifty almost touched 11960 today so sustained trading above todays high is required to push Nifty higher.
In last post we had mentioned a possibility of a bearish extracting triangle which can have negative implications for short term. That possibility still stands and markets appears to be in E leg ( last leg) of extracting triangle. If you notice all directional legs ( i.e, A, C & E) the A leg measured around 750 points ( 11108 to 11850), C leg measured around 360 points ( 11680 to 12040) and E leg has measured around 343 ( 11614 to 11957) today. So as of today, the current leg remains smaller than previous leg. (Rallies are getting shorter and falls are getting bigger). This pattern will be negated once Nifty crosses 11970-11975 levels.
Also, 12K strike levels continue to have a massive buildup of OI in calls so probably Nifty will find it a bit tough to move above 12K before expiry atleast. Other than that, for medium term the trend remains up and will remain up as long as the gap we saw after exit poll results ( 11420-11600) is not filled.
In nutshell, market trend remains up but be careful & cautious in 11900-980 zone because of expiry related and other technical factors mentioned above.
Happy Trading!
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