Medium Term Trend: ↑(UP)
Market update: Nifty played out on familiar lines today and once again failed to cross 11790 levels. It kept trading around 11750 levels for majority of the day but failed to break above the usual resistance and dropped to 11700 levels in last 30 mins. It closed 10 odd points down at 11712 levels.
Last week Nifty had closed at 11750 levels, this week was a short truncated week (with only 3 trading days). Nifty closed in negative territory on each day this week but still the weekly close is just less than 40 points down. this shows, for now momentum is missing from the fall. in the last 2 days Dow has fallen by more than 300 points but still markets have not moved. Both Dow and Nifty continue to trade near there last year high (both failing to sustain above it as well).
Having said this, the contracting environment which we are witnessing for last few weeks still continues and all Nifty rallies are getting shorter and shorter. Nifty continues to offer a horizontal resistance line which is sitting at 11775 levels & on the downside the support area is continuously rising. Previously it was 11550 then 11630 then 11650 and now 11700.
On Expiry day Nifty had made a high of 11795 and a low of around 11625 levels, its been 4 days since expiry but market has still not broken the highs and lows of expiry day (pretty interesting) and just moving within that range.
A flat resistance line and moving support zone is indicative of ascending triangle in the making and more often then not such triangles sees a break on the upside ( such breaks may or may not sustain). But if Nifty start breaking recent low and start trading lower then 11475-11500 will come into play. In the current scenario its looking difficult that 11475 levels will be taken out and until that happens the trend will not change.
VIX continue to surge ahead and moved up by 5% ( Its closed above 24 today). Such high levels were seen way back in Q1 2016 when Nifty was at 7K levels. Probably it will cool down once election result are out of its way ( 23rd May).
In nutshell, If Nifty break above 11800 levels then further rise can be expected, however if weakness continues then probably we can test 11550 levels once more (probably break it this time). But in current scenario breaking much below 11500-475 levels is looking a bit difficult so even if Market drops there it once again could be a buying opportunity.
Happy Trading!
Market update: Nifty played out on familiar lines today and once again failed to cross 11790 levels. It kept trading around 11750 levels for majority of the day but failed to break above the usual resistance and dropped to 11700 levels in last 30 mins. It closed 10 odd points down at 11712 levels.
Last week Nifty had closed at 11750 levels, this week was a short truncated week (with only 3 trading days). Nifty closed in negative territory on each day this week but still the weekly close is just less than 40 points down. this shows, for now momentum is missing from the fall. in the last 2 days Dow has fallen by more than 300 points but still markets have not moved. Both Dow and Nifty continue to trade near there last year high (both failing to sustain above it as well).
Having said this, the contracting environment which we are witnessing for last few weeks still continues and all Nifty rallies are getting shorter and shorter. Nifty continues to offer a horizontal resistance line which is sitting at 11775 levels & on the downside the support area is continuously rising. Previously it was 11550 then 11630 then 11650 and now 11700.
On Expiry day Nifty had made a high of 11795 and a low of around 11625 levels, its been 4 days since expiry but market has still not broken the highs and lows of expiry day (pretty interesting) and just moving within that range.
A flat resistance line and moving support zone is indicative of ascending triangle in the making and more often then not such triangles sees a break on the upside ( such breaks may or may not sustain). But if Nifty start breaking recent low and start trading lower then 11475-11500 will come into play. In the current scenario its looking difficult that 11475 levels will be taken out and until that happens the trend will not change.
VIX continue to surge ahead and moved up by 5% ( Its closed above 24 today). Such high levels were seen way back in Q1 2016 when Nifty was at 7K levels. Probably it will cool down once election result are out of its way ( 23rd May).
In nutshell, If Nifty break above 11800 levels then further rise can be expected, however if weakness continues then probably we can test 11550 levels once more (probably break it this time). But in current scenario breaking much below 11500-475 levels is looking a bit difficult so even if Market drops there it once again could be a buying opportunity.
Happy Trading!
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