Medium Term Trend: ↓ Down (Up above 12010)
Flirting with 11600: Nifty opened around 11600 but failed to cross above it. It even fell to 11530 levels but recovered later and closed at 11590 levels up 36 points.
Nifty continues to flirt with 11610-640 levels but is not able to cross it neither its seeing any substantial selloff from these levels. Last week we had mentioned that 11600 was an important support and once it broke same is likely to act as a resistance however whenever market break some important support /resistance level it usually sees a big movement in the direction of break ( like the rally we saw once 11K level was taken out by market earlier this year). Now its been 6 days but mkts are still sitting around 11600 and this is something which should be given importance. Its totally possible that markets are just consolidating sideways before it opens another leg down but the fact is that consolidation is taking place at levels which is too close to its previous support. Under the current circumstance if one is short in the market then he needs to be careful as a counter move by bulls can not be ruled out. Short positions are recommended once 11460 levels is taken out by in which case we are probably heading to 11300-350 levels.
Overall market continue to be in a downtrend and need a move above 11640 and then above 11750-800 levels in which case the probability of Nifty testing 12K+ levels once again will become strong.
Happy Trading!
Flirting with 11600: Nifty opened around 11600 but failed to cross above it. It even fell to 11530 levels but recovered later and closed at 11590 levels up 36 points.
Nifty continues to flirt with 11610-640 levels but is not able to cross it neither its seeing any substantial selloff from these levels. Last week we had mentioned that 11600 was an important support and once it broke same is likely to act as a resistance however whenever market break some important support /resistance level it usually sees a big movement in the direction of break ( like the rally we saw once 11K level was taken out by market earlier this year). Now its been 6 days but mkts are still sitting around 11600 and this is something which should be given importance. Its totally possible that markets are just consolidating sideways before it opens another leg down but the fact is that consolidation is taking place at levels which is too close to its previous support. Under the current circumstance if one is short in the market then he needs to be careful as a counter move by bulls can not be ruled out. Short positions are recommended once 11460 levels is taken out by in which case we are probably heading to 11300-350 levels.
Overall market continue to be in a downtrend and need a move above 11640 and then above 11750-800 levels in which case the probability of Nifty testing 12K+ levels once again will become strong.
Happy Trading!
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