Medium Term Trend: ↑UP (down below 11550)
Pullback continues: Nifty opened strong at 11950 but couldn't sustain at higher levels and drifted down. Some support at 11880 levels pushed Nifty back at 11900+ and it closed at 11920 up 50 points.
Previously we had mentioned that the bounce which had come on Friday was not looking strong and Nifty needed a strong push above 11950 levels to confirm that correction is over. Bulls had the right idea today in the morning when Nifty opened around 11950 but it failed to sustain much above it and lost steam soon after opening infact Nifty traded whole day below its opening prices ( which is not a bullish indication). At one stage ( just below the closing hours) Nifty had turned almost flat too. Hence for now we continue to advise caution at current levels and believe that this could just be a pull back which could push back to 11800 levels once again. 11800 has been tested quite a few times already and has weakened considerably so there are chances that it might not hold ( if tested again).
Having said this Market remains in uptrend and unless 11550-75 is taken out, we don't expect to see any major correction or fall in the markets. For short term though its possible that we could see some more weakness.Nifty had posted a 'hanging man' candle in previous session and today it has posted a perfect 'Doji'. Its opening and close are almost same with higher and lower shadow. This is indicating that market participants are lacking conviction and being indecisive for now.
Global markets continue to remain strong and Dow is putting up gains relentlessly ( now its just 3% below its all time high). Dow is also facing a crucial resistance at 26K levels and needs to see if it continues to move higher above 26K levels as well ( if that happens that will be a +ve sign for sure).
Overall no change in our views still, Nifty needs a strong push and close above 11970 ( todays high) to pull Nifty higher towards new all time high on the other hands break of 11870 could mean re-test of 11800 levels and if that doesn't hold then further weakness is likely.
Happy Trading!
Pullback continues: Nifty opened strong at 11950 but couldn't sustain at higher levels and drifted down. Some support at 11880 levels pushed Nifty back at 11900+ and it closed at 11920 up 50 points.
Previously we had mentioned that the bounce which had come on Friday was not looking strong and Nifty needed a strong push above 11950 levels to confirm that correction is over. Bulls had the right idea today in the morning when Nifty opened around 11950 but it failed to sustain much above it and lost steam soon after opening infact Nifty traded whole day below its opening prices ( which is not a bullish indication). At one stage ( just below the closing hours) Nifty had turned almost flat too. Hence for now we continue to advise caution at current levels and believe that this could just be a pull back which could push back to 11800 levels once again. 11800 has been tested quite a few times already and has weakened considerably so there are chances that it might not hold ( if tested again).
Having said this Market remains in uptrend and unless 11550-75 is taken out, we don't expect to see any major correction or fall in the markets. For short term though its possible that we could see some more weakness.Nifty had posted a 'hanging man' candle in previous session and today it has posted a perfect 'Doji'. Its opening and close are almost same with higher and lower shadow. This is indicating that market participants are lacking conviction and being indecisive for now.
Global markets continue to remain strong and Dow is putting up gains relentlessly ( now its just 3% below its all time high). Dow is also facing a crucial resistance at 26K levels and needs to see if it continues to move higher above 26K levels as well ( if that happens that will be a +ve sign for sure).
Overall no change in our views still, Nifty needs a strong push and close above 11970 ( todays high) to pull Nifty higher towards new all time high on the other hands break of 11870 could mean re-test of 11800 levels and if that doesn't hold then further weakness is likely.
Happy Trading!
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