Medium Term Trend: ↑(UP)
Market update: Nifty opened with a huge gap down at 11600 levels today and kept trading between 11600-11625 levels for majority of the day. It closed down 115 points at 11598 levels.
In previous post we had mentioned a possibility of Nifty making an ascending triangle and the fact that usually such patterns sees an break on the upside ( such patterns are often continuation patterns). However the weak global sentiments triggered by trade tariff between USA & China ensured that markets adopt a different trajectory in the near term and the pattern is broken on the downside.
Having said this we had also mentioned that a probability of testing 11550 is also there and this time if 11550 if tested probably wont hold. Today Nifty made a low of 11571 so it held for now, however now there is a strong probability of Nifty breaking below 11550 levels in next few trading sessions but even then the medium term wont change for Nifty. As long as Nifty is trading above 11460-11485 levels the uptrend stays intact.
Going forward, there could be a possibility that 11550 is broken which invites further selling but the fall is arrested around 11480-11500 levels and Nifty resumes its uptrend ( bear trap). But if the weakness persists below 11500 levels and break below key levels mentioned above ( closing basis) then probably the upmove is over for time being and we can see a trend reversal.
Market has seen lots of congestion around 11750 levels and usually the congestion is not observed during top areas, congestion is seen as a sign of accumulation.
In summary, as long as 11464-480 is held nothing changes for the market and the current fall could just be a final shake up by the market before it goes up for another leg on the upside. For now one should not attach too much importance to 11550 levels , its break might create panic for a while but its important to observe if market attempts to take support around 11500 levels.
Happy Trading!!
Market update: Nifty opened with a huge gap down at 11600 levels today and kept trading between 11600-11625 levels for majority of the day. It closed down 115 points at 11598 levels.
In previous post we had mentioned a possibility of Nifty making an ascending triangle and the fact that usually such patterns sees an break on the upside ( such patterns are often continuation patterns). However the weak global sentiments triggered by trade tariff between USA & China ensured that markets adopt a different trajectory in the near term and the pattern is broken on the downside.
Having said this we had also mentioned that a probability of testing 11550 is also there and this time if 11550 if tested probably wont hold. Today Nifty made a low of 11571 so it held for now, however now there is a strong probability of Nifty breaking below 11550 levels in next few trading sessions but even then the medium term wont change for Nifty. As long as Nifty is trading above 11460-11485 levels the uptrend stays intact.
Going forward, there could be a possibility that 11550 is broken which invites further selling but the fall is arrested around 11480-11500 levels and Nifty resumes its uptrend ( bear trap). But if the weakness persists below 11500 levels and break below key levels mentioned above ( closing basis) then probably the upmove is over for time being and we can see a trend reversal.
Market has seen lots of congestion around 11750 levels and usually the congestion is not observed during top areas, congestion is seen as a sign of accumulation.
In summary, as long as 11464-480 is held nothing changes for the market and the current fall could just be a final shake up by the market before it goes up for another leg on the upside. For now one should not attach too much importance to 11550 levels , its break might create panic for a while but its important to observe if market attempts to take support around 11500 levels.
Happy Trading!!
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