Medium Term Trend: ↑UP (down below 11400)
Day of Choppiness: Nifty opened strong at 12K levels and went to touch its previous high of 12040 ( Sensex even registered a new high) and turned back very sharply. Move down was so sharp that Nifty was almost 200 point down from its day high in a matter of mins. Nifty finally managed to regain some lost ground and closed at 11920 levels, down 25 points.
First half was really action packed with Nifty swinging wildly. It broke above 11975 levels ( even though it could not sustain) hence the possibility of extracting triangle pattern stands negated. However the 'dragonfly doji' market has posted on Tuesday still stands. Nifty needed a close above 11960 levels which it failed to do so.
Since last few days we have been saying that even though we are bullish on markets, we remain cautious at current levels. Its not a market where you can go and buy on breakouts ( todays move justified our stance). If some one had gone long this morning thinking market has broken through about 12K was in or a rude shock moments later. So trend is up no doubt, but there is a chance of markets going for a correction ( big or small). From here now it remains to be seen if the fall we saw today was just a intraday phenomenon or it continues going forward too.
We continue to be cautious at current levels for various reasons. firstly , the election euphoria is still there in market with everyone turning super bullish at current levels. Secondly, we are seeing some negative divergences on charts which is not supporting this upmove ( divergence is not strong but it does exists) and finally even on monthly charts Nifty has formed a 'Hanging man' kind of pattern which again can have some bearish implications as we move forward. Now it doesn't mean that we are bearish on markets ( not yet) however we are merely acknowledging that there is a possibility of sideways movement or some cooling off in the indices in near term.
On the daily charts it seems as if entire move from low of 11100 has completed five wave upmove ( 1-2-3-4-5) however its too early to say ( need more evidence to confirm that). Further weakness from here below 11800-820 levels will be a sign of correction setting up in the markets and fast move up above 12040 levels will set the ball rolling again in favor of bulls.
We keep guiding and advising our subscribers through regular intraday whatsapp updates as to what needs to be done, when & where to enter during trading hours. If you wish to subscribe to our live whatsapp Nifty calls/trading recommendation then you may subscribe using below link:
http://niftywaveindia.blogspot.com/2019/02/join-us-on-whatsapp-how-to-subscribe.html
Happy Trading!
Day of Choppiness: Nifty opened strong at 12K levels and went to touch its previous high of 12040 ( Sensex even registered a new high) and turned back very sharply. Move down was so sharp that Nifty was almost 200 point down from its day high in a matter of mins. Nifty finally managed to regain some lost ground and closed at 11920 levels, down 25 points.
First half was really action packed with Nifty swinging wildly. It broke above 11975 levels ( even though it could not sustain) hence the possibility of extracting triangle pattern stands negated. However the 'dragonfly doji' market has posted on Tuesday still stands. Nifty needed a close above 11960 levels which it failed to do so.
Since last few days we have been saying that even though we are bullish on markets, we remain cautious at current levels. Its not a market where you can go and buy on breakouts ( todays move justified our stance). If some one had gone long this morning thinking market has broken through about 12K was in or a rude shock moments later. So trend is up no doubt, but there is a chance of markets going for a correction ( big or small). From here now it remains to be seen if the fall we saw today was just a intraday phenomenon or it continues going forward too.
We continue to be cautious at current levels for various reasons. firstly , the election euphoria is still there in market with everyone turning super bullish at current levels. Secondly, we are seeing some negative divergences on charts which is not supporting this upmove ( divergence is not strong but it does exists) and finally even on monthly charts Nifty has formed a 'Hanging man' kind of pattern which again can have some bearish implications as we move forward. Now it doesn't mean that we are bearish on markets ( not yet) however we are merely acknowledging that there is a possibility of sideways movement or some cooling off in the indices in near term.
On the daily charts it seems as if entire move from low of 11100 has completed five wave upmove ( 1-2-3-4-5) however its too early to say ( need more evidence to confirm that). Further weakness from here below 11800-820 levels will be a sign of correction setting up in the markets and fast move up above 12040 levels will set the ball rolling again in favor of bulls.
We keep guiding and advising our subscribers through regular intraday whatsapp updates as to what needs to be done, when & where to enter during trading hours. If you wish to subscribe to our live whatsapp Nifty calls/trading recommendation then you may subscribe using below link:
http://niftywaveindia.blogspot.com/2019/02/join-us-on-whatsapp-how-to-subscribe.html
Happy Trading!
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