Medium Term Trend: ↑UP (down below 11400)
Market Consolidates: Nifty Opened today @ 11958 levels but immediately dropped to 11900 levels. It kept trading around 11900-920 levels through out the day and for a brief moment even dropped to 11875 levels but immediately recovered & closed flat at 11928 levels.
Yesterday we had mentioned that Nifty needs to cross 11970-975 levels to negate the 'extracting triangle pattern' . Those levels are still not crossed hence probability of 'extracting triangle' still remains (though it has weakened a little bit now).
On daily charts, Nifty today posted 'dragonfly doji'. A 'dragon fly' doji is a candlestick pattern where opening and closing rates are almost same but candle has a long lower shadow. Such pattern are also indicatives of probable exhaustion or trend reversal. Need a strong close above todays high to push market higher from here.
12K Call option continue to have open interest of around 4 million shares which is pretty huge ( and it seems most of these calls are written by smart money) hence for now markets are likely to be under pressure for couple of more days atleast. Even though overall trend of the market is bullish and 12500 level is likely in near future but if markets are not able to conquer 970-980 levels soon there is a probability that it sees one more fall before that happens.
Usually markets have a habit of making tops on euphoric days and bottoms on panic days, 12040 top hit by markets on election result day still stands even after 3 days. Now markets can go and make a new high tomorrow itself we are not disputing that, its entirely possible. All we are saying is that there is a chance of markets giving a little or big correction from here before that happens.
Any correction if comes, as long as it finishes above 11400 levels should not be a major cause of concern for bulls & should be an excellent buying opportunity only. We are bullish on the markets but with a caution, its not a market where you can blindly buy at any level.For now keep watching 11975-12000 to 11800-825 range as break on either side will give us further clues about what markets intends to do in short term.
Happy Trading!
Market Consolidates: Nifty Opened today @ 11958 levels but immediately dropped to 11900 levels. It kept trading around 11900-920 levels through out the day and for a brief moment even dropped to 11875 levels but immediately recovered & closed flat at 11928 levels.
Yesterday we had mentioned that Nifty needs to cross 11970-975 levels to negate the 'extracting triangle pattern' . Those levels are still not crossed hence probability of 'extracting triangle' still remains (though it has weakened a little bit now).
On daily charts, Nifty today posted 'dragonfly doji'. A 'dragon fly' doji is a candlestick pattern where opening and closing rates are almost same but candle has a long lower shadow. Such pattern are also indicatives of probable exhaustion or trend reversal. Need a strong close above todays high to push market higher from here.
12K Call option continue to have open interest of around 4 million shares which is pretty huge ( and it seems most of these calls are written by smart money) hence for now markets are likely to be under pressure for couple of more days atleast. Even though overall trend of the market is bullish and 12500 level is likely in near future but if markets are not able to conquer 970-980 levels soon there is a probability that it sees one more fall before that happens.
Usually markets have a habit of making tops on euphoric days and bottoms on panic days, 12040 top hit by markets on election result day still stands even after 3 days. Now markets can go and make a new high tomorrow itself we are not disputing that, its entirely possible. All we are saying is that there is a chance of markets giving a little or big correction from here before that happens.
Any correction if comes, as long as it finishes above 11400 levels should not be a major cause of concern for bulls & should be an excellent buying opportunity only. We are bullish on the markets but with a caution, its not a market where you can blindly buy at any level.For now keep watching 11975-12000 to 11800-825 range as break on either side will give us further clues about what markets intends to do in short term.
Happy Trading!
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