Medium Term Trend: ↓ Down (Up above 12010)
Sharp Fall: Nifty opened flat but couldn't sustain its opening highs and kept on drifting lower. It broke below 11600 levels and touched a low of 11580 before closing at 11596 levels (down 90 points).
After giving two positive close above 11640 Nifty once again slipped below 11600 levels which is a negative sign. However its too early to say if the short term positive biasness or the pull back which started from 11460 levels is over now. If nifty continues to exhibit weakness below 11575-580 tomorrow then probably we can say that the corrective leg which began from 11460 levels got completed at 11700 levels and new leg on the downside has begun.
Inspite of a sharp fall today, we saw a positive divergence on hourly charts which is suggesting that markets might attempt to protect 11580-11600 however continuous weakness below 11580-11600 will push Nifty back towards 11460 and 11350 after that.
Like we mentioned yesterday, 11730-11800 is a huge gap down area and hence a big resistance so its natural for traders to be apprehensive around 11700 levels and for now the resistance seems to be acting strong. It remains to be seen if Nifty attempts another shot at 11700 and tries to take it out or keep falling from here.
In summary, for now even though Nifty has reacted from 11700 levels and closed below 11600 levels , we still need more evidence and weakness below 11575 to conclude if corrective leg is over. If Nifty holds around 11575 levels then it might attempt another shot at 11700 levels.
Happy Trading!
Sharp Fall: Nifty opened flat but couldn't sustain its opening highs and kept on drifting lower. It broke below 11600 levels and touched a low of 11580 before closing at 11596 levels (down 90 points).
After giving two positive close above 11640 Nifty once again slipped below 11600 levels which is a negative sign. However its too early to say if the short term positive biasness or the pull back which started from 11460 levels is over now. If nifty continues to exhibit weakness below 11575-580 tomorrow then probably we can say that the corrective leg which began from 11460 levels got completed at 11700 levels and new leg on the downside has begun.
Inspite of a sharp fall today, we saw a positive divergence on hourly charts which is suggesting that markets might attempt to protect 11580-11600 however continuous weakness below 11580-11600 will push Nifty back towards 11460 and 11350 after that.
Like we mentioned yesterday, 11730-11800 is a huge gap down area and hence a big resistance so its natural for traders to be apprehensive around 11700 levels and for now the resistance seems to be acting strong. It remains to be seen if Nifty attempts another shot at 11700 and tries to take it out or keep falling from here.
In summary, for now even though Nifty has reacted from 11700 levels and closed below 11600 levels , we still need more evidence and weakness below 11575 to conclude if corrective leg is over. If Nifty holds around 11575 levels then it might attempt another shot at 11700 levels.
Happy Trading!
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