Medium Term Trend: ↑UP (down below 11550)
Wild Chops: Nifty opened strong on the back of +ve global cues around 11750 and quickly climbed to 11800 levels however it failed to sustained it & started moving down. It touched a day low of 11625 before buying support emerged at lower levels and pushed Nifty back to 11700. it closed flat at 11691 level.
Looking at the closing price, Nifty closed flat but during the day its trading range was almost 200 points which is huge. Nifty made a big 'Doji' on daily charts today which signifies indecisiveness in the markets. Both bulls and bears are not committing and preferring a trade-in & trade-out kind of scenario for now.
Nifty failed to take out 11800 (previous support now acting as a resistance?) however 11600 continue to provide support for now. Previous trading range of 11800-12K levels has now been shifted to 11600-11800 it seems. Such wild swings are probably an indication that markets are preparing to move big in either direction. We don't expect range bound trading for too long. Below are some of the +ves and -ves we can see
Positives: a) Nifty OI continue to be light b) Global markets are being supportive - Dow is nearing its all time high c) Nifty is managing to hold the election day result low ( 11600) & d) PCR >1
Negatives: a) Failure to take out 11800 levels b) Daily momentum indicators have started giving negative crossovers c) correction which started from 12100 is not giving any sign of completion till now & d) Nifty continues to make lower lows on daily chart & e) 'Bearish belt hold pattern' on weekly chart.
So for now one should continue to be cautious as wild choppy moves might continue for now. Keep watching 11550-11800 level range as a break of this range is likely to propel Nifty further in that direction.
Happy Trading!!
Wild Chops: Nifty opened strong on the back of +ve global cues around 11750 and quickly climbed to 11800 levels however it failed to sustained it & started moving down. It touched a day low of 11625 before buying support emerged at lower levels and pushed Nifty back to 11700. it closed flat at 11691 level.
Looking at the closing price, Nifty closed flat but during the day its trading range was almost 200 points which is huge. Nifty made a big 'Doji' on daily charts today which signifies indecisiveness in the markets. Both bulls and bears are not committing and preferring a trade-in & trade-out kind of scenario for now.
Nifty failed to take out 11800 (previous support now acting as a resistance?) however 11600 continue to provide support for now. Previous trading range of 11800-12K levels has now been shifted to 11600-11800 it seems. Such wild swings are probably an indication that markets are preparing to move big in either direction. We don't expect range bound trading for too long. Below are some of the +ves and -ves we can see
Positives: a) Nifty OI continue to be light b) Global markets are being supportive - Dow is nearing its all time high c) Nifty is managing to hold the election day result low ( 11600) & d) PCR >1
Negatives: a) Failure to take out 11800 levels b) Daily momentum indicators have started giving negative crossovers c) correction which started from 12100 is not giving any sign of completion till now & d) Nifty continues to make lower lows on daily chart & e) 'Bearish belt hold pattern' on weekly chart.
So for now one should continue to be cautious as wild choppy moves might continue for now. Keep watching 11550-11800 level range as a break of this range is likely to propel Nifty further in that direction.
Happy Trading!!
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