Medium Term Trend: ↑UP (down below 11550)
Flat closing: Nifty opened around 11875 levels kept trading between 11900-875 levels for most part of the day. It crossed 11900 levels briefly but couldn't sustain for long and dropped to 11825 but managed to make a small bounce and closed flat.
There was lot of volatility after Nifty crossed 11900 levels, it fell sharply to 11830 then again moved up to 11890 and once again fell sharply to 11825 in last 30 mins or so. However volatility on a expiry day is always expected so not too much should be read into it. Thing to notice is that Nifty again made a new high today and protected the lows of previous day. So inspite of the fact that 11900 couldn't be reclaimed on a closing basis, this still counted as a small positive.
We had mentioned in previous posts that even thought 11840 is crossed, Nifty still has a very strong resistance at 11940-11975 and its good to see that market is respecting these levels. Some hesitancy was always expected above 11900 and that's exactly what happened. If market can sustain around current levels ( 11800) then it might attempt another shot at 11975 levels pretty soon. There are many who are seeing todays sharp reaction from 11920 levels as a completion of corrective pullback and the resumption of bearish move back to 11600-700 levels. I am not suggesting that a bearish move can not start from here, it can very well start but we need to see more weakness before we conclude that. Nifty needs to be break below 11800-760 levels pretty soon from current levels else we might see another move towards 11950 levels in a day or 2.
To summarise, Nifty is trading near a very major resistance zone (11940-975) and today it even reacted down from these levels, if Nifty continue to see weakness from here and Nifty goes on to break 11800-760 levels then most likely its heading back towards 11600 levels however if it continue to show strength ( like it has been showing since last 3 days) then a restest of 11940-975 is on the card and if that is crossed then a new all time high can be expected pretty soon.
Happy Trading!
Flat closing: Nifty opened around 11875 levels kept trading between 11900-875 levels for most part of the day. It crossed 11900 levels briefly but couldn't sustain for long and dropped to 11825 but managed to make a small bounce and closed flat.
There was lot of volatility after Nifty crossed 11900 levels, it fell sharply to 11830 then again moved up to 11890 and once again fell sharply to 11825 in last 30 mins or so. However volatility on a expiry day is always expected so not too much should be read into it. Thing to notice is that Nifty again made a new high today and protected the lows of previous day. So inspite of the fact that 11900 couldn't be reclaimed on a closing basis, this still counted as a small positive.
We had mentioned in previous posts that even thought 11840 is crossed, Nifty still has a very strong resistance at 11940-11975 and its good to see that market is respecting these levels. Some hesitancy was always expected above 11900 and that's exactly what happened. If market can sustain around current levels ( 11800) then it might attempt another shot at 11975 levels pretty soon. There are many who are seeing todays sharp reaction from 11920 levels as a completion of corrective pullback and the resumption of bearish move back to 11600-700 levels. I am not suggesting that a bearish move can not start from here, it can very well start but we need to see more weakness before we conclude that. Nifty needs to be break below 11800-760 levels pretty soon from current levels else we might see another move towards 11950 levels in a day or 2.
To summarise, Nifty is trading near a very major resistance zone (11940-975) and today it even reacted down from these levels, if Nifty continue to see weakness from here and Nifty goes on to break 11800-760 levels then most likely its heading back towards 11600 levels however if it continue to show strength ( like it has been showing since last 3 days) then a restest of 11940-975 is on the card and if that is crossed then a new all time high can be expected pretty soon.
Happy Trading!
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