Medium Term Trend: ↓ Down (Up above 12103)
Flat day: Nifty again opened with a gap down below 11500 levels and it went on to touch 11460 levels before some support emerged and it closed flat at 11550 levels.
Yesterday we had mentioned that the way Nifty has fallen, it has probably opened the gateway for much lower levels and for any chance of positive scenario to emerge Nifty needs to to defend 11525 levels. Though 11525 was breached intraday , Nifty somehow has managed to give a closing above it however it will be too early to say if Nifty has found the support it was looking for. After a strong fall yesterday market had become oversold on the short term charts. Todays lift from lower levels has somehow pulled nifty back from oversold zone.
Going forward 11610-640 will be a key level to watch out for form short term perspective. This level had acted as a rock solid support in last few weeks and the chances are same will be acting as a stiff resistance going forward. If nifty manages to cross 11640 levels then 11730-800 becomes another critical level/rage ( Mondays gap down).
There is a view in the market that the entire move after exit poll day till last week ( 11400-11980) was a 'distribution pattern' and smart money has used this opportunity to offload their holding on to weaker hands. All 'distribution' patterns after completion usually sees a very strong fall and since we saw a strong fall yesterday (that too a gap down) there is a very strong possibility that it was indeed a distribution by strong hands. However there is another possibility which suggests that the entire flattish move we saw was just an 'accumulation'. If that is the case then we should see another move up pretty soon. For now the chances of this being a 'distribution' looks strong however one cannot say with surety but if that's true then Nifty will probably break below 11400 levels and fill the entire gap ( for now the gap still stands).
For now, like we said yesterday, keep an eye on 11610-630 levels and above that 11800 (Nifty needs to overcome 11800 levels if it wants to resume the uptrend else the weakness might continue and Nifty will keep on falling and testing lower levels. for bulls , its important that Nifty holds on to 11525 level on closing basis any weakness below 11500 levels could push Nifty back to 11400 levels and below that 11100 levels.
Happy Trading!
Flat day: Nifty again opened with a gap down below 11500 levels and it went on to touch 11460 levels before some support emerged and it closed flat at 11550 levels.
Yesterday we had mentioned that the way Nifty has fallen, it has probably opened the gateway for much lower levels and for any chance of positive scenario to emerge Nifty needs to to defend 11525 levels. Though 11525 was breached intraday , Nifty somehow has managed to give a closing above it however it will be too early to say if Nifty has found the support it was looking for. After a strong fall yesterday market had become oversold on the short term charts. Todays lift from lower levels has somehow pulled nifty back from oversold zone.
Going forward 11610-640 will be a key level to watch out for form short term perspective. This level had acted as a rock solid support in last few weeks and the chances are same will be acting as a stiff resistance going forward. If nifty manages to cross 11640 levels then 11730-800 becomes another critical level/rage ( Mondays gap down).
There is a view in the market that the entire move after exit poll day till last week ( 11400-11980) was a 'distribution pattern' and smart money has used this opportunity to offload their holding on to weaker hands. All 'distribution' patterns after completion usually sees a very strong fall and since we saw a strong fall yesterday (that too a gap down) there is a very strong possibility that it was indeed a distribution by strong hands. However there is another possibility which suggests that the entire flattish move we saw was just an 'accumulation'. If that is the case then we should see another move up pretty soon. For now the chances of this being a 'distribution' looks strong however one cannot say with surety but if that's true then Nifty will probably break below 11400 levels and fill the entire gap ( for now the gap still stands).
For now, like we said yesterday, keep an eye on 11610-630 levels and above that 11800 (Nifty needs to overcome 11800 levels if it wants to resume the uptrend else the weakness might continue and Nifty will keep on falling and testing lower levels. for bulls , its important that Nifty holds on to 11525 level on closing basis any weakness below 11500 levels could push Nifty back to 11400 levels and below that 11100 levels.
Happy Trading!
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