Medium Term Trend: ↑UP (down below 11550)
Weakness to the fore: Nifty opened down around 11800 levels and immediately started moving down. It kept drifting down and broke below 11700 levels in the last hour. It finally closed at 11672, down 150 points.
We have been warning caution since last few days and continuously saying that Nifty can correct or remain weak in near term and 11800 could be tested again and if that happens then probably 11800 won't hold as it has weakened considerably. Nifty broke below 11800 and the weakness which emerged after that is for everyone to see. We had also mentioned that gapdown opening is possible on Monday, though today wasnt exactly a gapdown, the end result is line with our expectations and prediction. The way Nifty had closed on Friday had clearly raised this possibility in advance.
Now Nifty is in very critical zone, this area of 11550 to 11650 is the level to watch out for. Till this level holds, it wont be wise to assume that nifty upmove is over and a big down move has commenced. However break (and sustained trading) below 11550 will change the medium term to down and could invite further selling and weakness. After exit poll results, nifty had posted a huge gapup on intraday charts (11400-11600). If this gap area fails to provide support then there is a possibility that entire gap is filled (which means retest of 11400).
So for now, Nifty remains weak hence one should not be in a hurry to go long but wait to see if market takes support level and stablises around current levels and enter only when it starts exhibiting signs of strength.
Happy Trading!
Weakness to the fore: Nifty opened down around 11800 levels and immediately started moving down. It kept drifting down and broke below 11700 levels in the last hour. It finally closed at 11672, down 150 points.
We have been warning caution since last few days and continuously saying that Nifty can correct or remain weak in near term and 11800 could be tested again and if that happens then probably 11800 won't hold as it has weakened considerably. Nifty broke below 11800 and the weakness which emerged after that is for everyone to see. We had also mentioned that gapdown opening is possible on Monday, though today wasnt exactly a gapdown, the end result is line with our expectations and prediction. The way Nifty had closed on Friday had clearly raised this possibility in advance.
Now Nifty is in very critical zone, this area of 11550 to 11650 is the level to watch out for. Till this level holds, it wont be wise to assume that nifty upmove is over and a big down move has commenced. However break (and sustained trading) below 11550 will change the medium term to down and could invite further selling and weakness. After exit poll results, nifty had posted a huge gapup on intraday charts (11400-11600). If this gap area fails to provide support then there is a possibility that entire gap is filled (which means retest of 11400).
So for now, Nifty remains weak hence one should not be in a hurry to go long but wait to see if market takes support level and stablises around current levels and enter only when it starts exhibiting signs of strength.
Happy Trading!
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