Medium Term Trend: ↑UP (down below 11550)
Finding its Feet: Nifty opened a bit weak around 11760 levels but quickly moved above 11800 levels. It traded between 11800-11830 for most part of the day before shooting up to 11870 in last hour. It finally closed around 11850 levels up 50 points.
In the morning session Nifty threatened to play a familiar script where it reverses after a day of strong bullish move. US markets gave a negative close yesterday and that pushed nifty to open negatively in the morning (that would have motivated many traders to open short positions) however Nifty played to a different script today and moved up above 11800 levels. It didn't move above 11840-45 till last hour and kept traders guessing.
We had said yesterdays that if Nifty moves above 11845 tomorrow then it will be the first sign of stabilization & would indicate that the correction which began from 12100 levels is probably coming to an end now. Today markets did exactly did that & both Nifty & Sensex have broken above their previous swing high ( though the closing on Sensex is below that). However this is just the first milestone and market has another very tough resistance sitting at 11940-975 zone. To establish itself in the upmove trajectory firmly, Nifty needs to conquer and move above these levels pretty soon (any delay or hesitation around these levels might push markets down again).
We have also been saying that markets are probably looking to break free ( in either direction) and one needs to stick to his position and at the same time be prepared to change sides quickly as the move on either side could be pretty strong ( please ref to below post if you haven't till now)
http://niftywaveindia.blogspot.com/2019/06/nifty-outlook-and-trend-for-coming.html
Both the probabilities as mentioned in the above post are still valid and If Nifty is able to cross & sustain 11940-975 then the probability of bullish option will increase.For now markets are trying to stabilize & one needs to observe and see if its able to build further strength from here.
Happy Trading!
Finding its Feet: Nifty opened a bit weak around 11760 levels but quickly moved above 11800 levels. It traded between 11800-11830 for most part of the day before shooting up to 11870 in last hour. It finally closed around 11850 levels up 50 points.
In the morning session Nifty threatened to play a familiar script where it reverses after a day of strong bullish move. US markets gave a negative close yesterday and that pushed nifty to open negatively in the morning (that would have motivated many traders to open short positions) however Nifty played to a different script today and moved up above 11800 levels. It didn't move above 11840-45 till last hour and kept traders guessing.
We had said yesterdays that if Nifty moves above 11845 tomorrow then it will be the first sign of stabilization & would indicate that the correction which began from 12100 levels is probably coming to an end now. Today markets did exactly did that & both Nifty & Sensex have broken above their previous swing high ( though the closing on Sensex is below that). However this is just the first milestone and market has another very tough resistance sitting at 11940-975 zone. To establish itself in the upmove trajectory firmly, Nifty needs to conquer and move above these levels pretty soon (any delay or hesitation around these levels might push markets down again).
We have also been saying that markets are probably looking to break free ( in either direction) and one needs to stick to his position and at the same time be prepared to change sides quickly as the move on either side could be pretty strong ( please ref to below post if you haven't till now)
http://niftywaveindia.blogspot.com/2019/06/nifty-outlook-and-trend-for-coming.html
Both the probabilities as mentioned in the above post are still valid and If Nifty is able to cross & sustain 11940-975 then the probability of bullish option will increase.For now markets are trying to stabilize & one needs to observe and see if its able to build further strength from here.
Happy Trading!
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