Medium Term Trend: ↑UP (down below 11550)
Fails to break on upside: Nifty opened slightly weak around 11930 levels and whole day traded weak between 11870-11920 levels. It finally closed a tad above 11900 levels down 60 points.
We have been mentioning since last few days that Nifty has strong resistance at 11975 levels and the bounce we have seen from 11770 levels is not looking very strong and there is a likelihood of Nifty testing 11800 level once again. Nifty did try to take out 11975 levels yesterday but failed to close above it and today it slipped further below 11900 levels. yesterday we had given the range of 11870-11975 and Nifty traded in the range for whole day.
Going forward too the same view stands, Nifty will continue to face stiff resistance at 11950-975 levels and support is likely at 11870-50 levels and break of these levels could push Nifty back to 11800 levels and weakness is likely to continue if 11800 gives up.If 11800 is tested again then the likelihood of Nifty breaking the same is there. This level is tested too many times and has weakened considerably hence it may not hold this time around.
Having said this the overall trend of the market remains up and as long as 11550 holds there is no serious concern for the bulls but in the near term we may see some more weakness before market start moving up.
US markets, after relentless rise of 5 days closed in negative yesterday and one need to observe global markets carefully for any sign of weakness going forward.
In summary, Nifty overall trend remains up but the pull back we are witnessing from last 2-3 days is not looking strong/impulsive hence some bit of caution is advised.
Happy Trading
Fails to break on upside: Nifty opened slightly weak around 11930 levels and whole day traded weak between 11870-11920 levels. It finally closed a tad above 11900 levels down 60 points.
We have been mentioning since last few days that Nifty has strong resistance at 11975 levels and the bounce we have seen from 11770 levels is not looking very strong and there is a likelihood of Nifty testing 11800 level once again. Nifty did try to take out 11975 levels yesterday but failed to close above it and today it slipped further below 11900 levels. yesterday we had given the range of 11870-11975 and Nifty traded in the range for whole day.
Going forward too the same view stands, Nifty will continue to face stiff resistance at 11950-975 levels and support is likely at 11870-50 levels and break of these levels could push Nifty back to 11800 levels and weakness is likely to continue if 11800 gives up.If 11800 is tested again then the likelihood of Nifty breaking the same is there. This level is tested too many times and has weakened considerably hence it may not hold this time around.
Having said this the overall trend of the market remains up and as long as 11550 holds there is no serious concern for the bulls but in the near term we may see some more weakness before market start moving up.
US markets, after relentless rise of 5 days closed in negative yesterday and one need to observe global markets carefully for any sign of weakness going forward.
In summary, Nifty overall trend remains up but the pull back we are witnessing from last 2-3 days is not looking strong/impulsive hence some bit of caution is advised.
Happy Trading
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