Medium Term Trend: ↓ Down (Up above 12010)
Positive Bias Continues: Nifty opened flat but went on to hit a higher high than previous day, tested 11700 levels and closed at 11690 levels, up 30 points.
Nifty now has given 2 positive close above 11640 levels which gives nifty some sort of positive bias (atleast for the very short term) but the short term can change anytime so one has to be cautious at current levels.
Last week when Nifty had crashed from 11800 levels, it had opened with a gap down and the gap stands at 11730-11800. Its natural for traders to be apprehensive in this zone and hence 11730-800 is likely to offer a strong resistance ( like 11400-11690 was offering support previously and even now). Nifty is now trading within 2 strong gaps one is bullish i.e, 11400-690 and other is bearish i.e, 11800-730. Going forward it will be interesting to see as to which gap Nifty decides to fill.
We have been warning caution since last few days against blind shorting (all our shorts were already covered around 11480 & 11575 levels) and continue to advise so. There are quite a few things that are suggesting that fresh shorts should not be taken at this stage but one should wait for markets to exhibit weakness first and then only go short.
In summary, as long as Nifty is showing strength and continue to hit higher highs, the short term bias remains positive but to change the overall trend to 'up' Nifty needs to conquer 11800 and after that 12K levels. If markets can successfully close the bearish gap (11730-11800) level then that will the first indication that Nifty is ready to hit much higher levels. On the other hand, weakness below 11575 levels could push Nifty back to 11460 and then to 11350 levels.
Happy Trading!
Positive Bias Continues: Nifty opened flat but went on to hit a higher high than previous day, tested 11700 levels and closed at 11690 levels, up 30 points.
Nifty now has given 2 positive close above 11640 levels which gives nifty some sort of positive bias (atleast for the very short term) but the short term can change anytime so one has to be cautious at current levels.
Last week when Nifty had crashed from 11800 levels, it had opened with a gap down and the gap stands at 11730-11800. Its natural for traders to be apprehensive in this zone and hence 11730-800 is likely to offer a strong resistance ( like 11400-11690 was offering support previously and even now). Nifty is now trading within 2 strong gaps one is bullish i.e, 11400-690 and other is bearish i.e, 11800-730. Going forward it will be interesting to see as to which gap Nifty decides to fill.
We have been warning caution since last few days against blind shorting (all our shorts were already covered around 11480 & 11575 levels) and continue to advise so. There are quite a few things that are suggesting that fresh shorts should not be taken at this stage but one should wait for markets to exhibit weakness first and then only go short.
In summary, as long as Nifty is showing strength and continue to hit higher highs, the short term bias remains positive but to change the overall trend to 'up' Nifty needs to conquer 11800 and after that 12K levels. If markets can successfully close the bearish gap (11730-11800) level then that will the first indication that Nifty is ready to hit much higher levels. On the other hand, weakness below 11575 levels could push Nifty back to 11460 and then to 11350 levels.
Happy Trading!
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