Medium Term Trend: ↓ Down (Changes to Up above 11220)
Pullback Continues: Nifty opened strongly above 10900 but the weak global markets pulled it all the way to down 10750 before buying support once again pushed it back to 10900 and then to 11K levels. It finally closed at 11060 levels, up 230 points.
We had been mentioning a possibility of Nifty hitting some kind of bottom at 10650 and todays upmove goes a step further in strengthening our theory. A gapup opening was always expected today but the sellout in global markets ( led by US) muddied the water a little. Ideally speaking we would have preferred seeing a 'runaway' kind of gap today, where market opened strong and kept on moving up. The intraday ( in the first hour itself) fall from 10950 to 10750 has disturbed the pattern a little and a further fall towards 10800-750 is possible ( however the chances of happening so don't look so great).
Nifty has to sustain 11K levels and if it does that and goes on to break above 11100 & 11220 then we can safely assume that downside is done for the time being and market has opened another leg on the upside. Nifty might consolidate a bit around 11100-11500 levels before breaking towards higher level but more and more indicators are now pointing towards a break on the upside.
For now keep an eye of 1095-11K levels as this becomes a critical level for short term support and 11175-11220 on the upside above which medium term trend for Nifty will change to 'UP'.
Happy Trading!
Pullback Continues: Nifty opened strongly above 10900 but the weak global markets pulled it all the way to down 10750 before buying support once again pushed it back to 10900 and then to 11K levels. It finally closed at 11060 levels, up 230 points.
We had been mentioning a possibility of Nifty hitting some kind of bottom at 10650 and todays upmove goes a step further in strengthening our theory. A gapup opening was always expected today but the sellout in global markets ( led by US) muddied the water a little. Ideally speaking we would have preferred seeing a 'runaway' kind of gap today, where market opened strong and kept on moving up. The intraday ( in the first hour itself) fall from 10950 to 10750 has disturbed the pattern a little and a further fall towards 10800-750 is possible ( however the chances of happening so don't look so great).
Nifty has to sustain 11K levels and if it does that and goes on to break above 11100 & 11220 then we can safely assume that downside is done for the time being and market has opened another leg on the upside. Nifty might consolidate a bit around 11100-11500 levels before breaking towards higher level but more and more indicators are now pointing towards a break on the upside.
For now keep an eye of 1095-11K levels as this becomes a critical level for short term support and 11175-11220 on the upside above which medium term trend for Nifty will change to 'UP'.
Happy Trading!
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