Medium Term Trend: ↑UP (down below 11550)
Bounce Back: Nifty opened strong around 11850 on the back of strong global cues and traded whole day between 11840-11880 levels. It closed at 11865 levels and added 75 points.
After giving a weak closing on Friday nifty bounced back smartly and reversed all its Friday losses and once again reached within the striking distance of 11900 levels. Though Nifty didn't add substantial gains to its opening price, it held on to its opening gain ( which is a positive sign). A game of cat and mouse is in play since last 3 months ( since Apr) where market is moving aimlessly and ended up not going anywhere. Historically speaking July is a month which usually sees big movement/swing trades hence the fact that we have already consumed 3 months at almost same level and a new month has begun today (which generally sees big swings), we can now hope to see a big trending move anytime now.
Todays upmove was basically in line with global markets which went up due to trade tensions between US & China subsiding.If that is the only factor behind todays rally then ideally it should not sustain and market should reverse these gains completely very shortly. However if the rally is part of the ongoing trend and merely helped by this positive news then gains should stay and should add more points going forward.
As far as Nifty is concerned, 11950-11975 still remains a resistance and above that 12070-12080 will pose a big challenge. If Nifty can clear these hurdle then probably it will be setting up the stage for one strong push on the upside. On the downside, 11800-11760 will continue to provide support and below that 11650-11600 ( evergreen support) will come into play.
Happy Trading!
Bounce Back: Nifty opened strong around 11850 on the back of strong global cues and traded whole day between 11840-11880 levels. It closed at 11865 levels and added 75 points.
After giving a weak closing on Friday nifty bounced back smartly and reversed all its Friday losses and once again reached within the striking distance of 11900 levels. Though Nifty didn't add substantial gains to its opening price, it held on to its opening gain ( which is a positive sign). A game of cat and mouse is in play since last 3 months ( since Apr) where market is moving aimlessly and ended up not going anywhere. Historically speaking July is a month which usually sees big movement/swing trades hence the fact that we have already consumed 3 months at almost same level and a new month has begun today (which generally sees big swings), we can now hope to see a big trending move anytime now.
Todays upmove was basically in line with global markets which went up due to trade tensions between US & China subsiding.If that is the only factor behind todays rally then ideally it should not sustain and market should reverse these gains completely very shortly. However if the rally is part of the ongoing trend and merely helped by this positive news then gains should stay and should add more points going forward.
As far as Nifty is concerned, 11950-11975 still remains a resistance and above that 12070-12080 will pose a big challenge. If Nifty can clear these hurdle then probably it will be setting up the stage for one strong push on the upside. On the downside, 11800-11760 will continue to provide support and below that 11650-11600 ( evergreen support) will come into play.
Happy Trading!
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