Medium Term Trend: ↑UP (down below 11550)
lackluster day: Nifty opened flat and consolidated whole day between 12080-12K. It closed down 65 points at 12020 levels.
Yesterday Nifty had surpassed and closed above a key level of 12040 (election day result high) however after a strong day of gains yesterday, markets failed to put up any gains above and slipped below 12040 levels yet again. as long as 12K-12040 holds there is always a possibility of Nifty moving up from here however if it starts trading below 12k levels consistently then it can slip to 11850-11900 levels again.
Thursday is an important day for markets, there is RBI policy and prospect of rate cut ( which market seems to be factoring in). Its also a day of weekly expiry plus our market is closed tomorrow so it will have to react to global cues of 2 days when it opens for trading on Thursday. So a gap-up or a gap-down is very much possible in such scenario.
One thing to note is the divergence between Dow and Nifty. Lately both indices were pretty much in sync and moving in tandem however since last few days again there seems to be a big divergence. Nifty has made a new lifetime high whereas Dow is almost 5-6% down from its previous high and threatening to move down. Ideally both should align and catchup as we move forward so it will be interesting to note if Dow moves up or Nifty start moving down. For now the way Nifty is moving up is suggesting that global markets will start improving ( atleast that's what Nifty seems to be factoring in for now).
In Nutshell, Nifty's inability to cross yesterdays high and close above 12040 is a bit of downer but the fall today was pretty slow and probably just a pause before the next move. Need to observe how market trades on Thursday/Friday ( especially after rate cut news). As long Nifty is trading above 12k there should not be any major worry for Bulls in short term.
Happy Trading!
lackluster day: Nifty opened flat and consolidated whole day between 12080-12K. It closed down 65 points at 12020 levels.
Yesterday Nifty had surpassed and closed above a key level of 12040 (election day result high) however after a strong day of gains yesterday, markets failed to put up any gains above and slipped below 12040 levels yet again. as long as 12K-12040 holds there is always a possibility of Nifty moving up from here however if it starts trading below 12k levels consistently then it can slip to 11850-11900 levels again.
Thursday is an important day for markets, there is RBI policy and prospect of rate cut ( which market seems to be factoring in). Its also a day of weekly expiry plus our market is closed tomorrow so it will have to react to global cues of 2 days when it opens for trading on Thursday. So a gap-up or a gap-down is very much possible in such scenario.
One thing to note is the divergence between Dow and Nifty. Lately both indices were pretty much in sync and moving in tandem however since last few days again there seems to be a big divergence. Nifty has made a new lifetime high whereas Dow is almost 5-6% down from its previous high and threatening to move down. Ideally both should align and catchup as we move forward so it will be interesting to note if Dow moves up or Nifty start moving down. For now the way Nifty is moving up is suggesting that global markets will start improving ( atleast that's what Nifty seems to be factoring in for now).
In Nutshell, Nifty's inability to cross yesterdays high and close above 12040 is a bit of downer but the fall today was pretty slow and probably just a pause before the next move. Need to observe how market trades on Thursday/Friday ( especially after rate cut news). As long Nifty is trading above 12k there should not be any major worry for Bulls in short term.
Happy Trading!
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