Medium Term Trend: ↑UP (down below 11550)
Slow and Steady: Nifty opened slightly in positive territory and consolidated entire day in the range of 11940 and 11970. It finally closed at 11945 levels up 30 points.
Slow and Steady: Nifty opened slightly in positive territory and consolidated entire day in the range of 11940 and 11970. It finally closed at 11945 levels up 30 points.
Like we mentioned in our previous posts that nifty has a good resistance in 11940 975 zone and the way Nifty is trading it seems this resistance will be taken out. Yesterday markets tested 11940 but couldn't cross it, today it tested the upper range 11970 and closed above 11940 levels. Tomorrow is an important day (budget) and it will be interesting to see if nifty is able to cross these levels. Once crossed, the next logical target for market will be 12050-75 zone and if that is surpassed then there its highly likely that mkts are starting or have already started a strong trend on the upside.
One caution though is that Niftys movement from lows of 11600 is looking like a rising wedge (which is a bearish pattern ) however once 12075 level is taken out then rising wedge pattern will be negated.
12050 12075 assumes a lot of significance as it was the high touched during elections result day and till day mkt has not been able to cross it. Markets have a habit of posting tops on euphoric days and election result day was one such euphoric day. However another important characteristics of the market is that it doesn't hang around for too long near top area. Now Nifty has spent almost a month near this zone hence the chances of Nifty taking out this zone has increased. So for now its time to be cautiously optimistic.
Happy trading!!
One caution though is that Niftys movement from lows of 11600 is looking like a rising wedge (which is a bearish pattern ) however once 12075 level is taken out then rising wedge pattern will be negated.
12050 12075 assumes a lot of significance as it was the high touched during elections result day and till day mkt has not been able to cross it. Markets have a habit of posting tops on euphoric days and election result day was one such euphoric day. However another important characteristics of the market is that it doesn't hang around for too long near top area. Now Nifty has spent almost a month near this zone hence the chances of Nifty taking out this zone has increased. So for now its time to be cautiously optimistic.
Happy trading!!
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