Medium Term Trend: ↓ Down (Changes to Up above 11220)
Upmove Stretches: Nifty opened positive and traded in the positive territory through out the trading session. It closed at 11105 up 50 points.
Nifty traded positive but couldn't take out the previous resistance level of 11150-175. Last 2 times Nifty tried to cross these levels it failed and dropped lower hence some bit of hesitancy is expected around these levels. But the fact that Nifty is consolidating just below this 11050 is definitely a good sign for bulls.
We have been saying since last few days that there is a chance of Nifty hitting some kind of bottom around 10750 levels. Nifty did breach that level momentarily but again bounced back and is back above 11K levels in a flash. Usually that's how bottoms are made in markets, even before one can blink , bottom is hit and price moves back up again. Now in last 3 days Nifty has moved more than 350 points. Going forward 11200-220 is going to be a very crucial level. If Nifty can conquer 11220 then it could open gateways to much higher levels. Regular readers of this blog are aware that we have been bullish on the markets ever since it hit 10780 and highlighted few technical reason ( time cycles and the fact that weekly RSI had hit 33) to support our theory. We also mentioned that if certain things played out then could see a strong bullish move of 1500-2000 points from the recent lows. We still hold on to our view. However mind you, volatility could remain high and choppy moves could be seen in plenty.
In summary, keep an eye on 11175-11200, strong and sustainable move above this level will further strengthen our view and could push Nifty much higher from these levels on the other hand 10950-10900 should act as a very very strong support now and in case of a breach (chances look small) we could again dip towards 10800-750 levels.
Happy Trading!
Upmove Stretches: Nifty opened positive and traded in the positive territory through out the trading session. It closed at 11105 up 50 points.
Nifty traded positive but couldn't take out the previous resistance level of 11150-175. Last 2 times Nifty tried to cross these levels it failed and dropped lower hence some bit of hesitancy is expected around these levels. But the fact that Nifty is consolidating just below this 11050 is definitely a good sign for bulls.
We have been saying since last few days that there is a chance of Nifty hitting some kind of bottom around 10750 levels. Nifty did breach that level momentarily but again bounced back and is back above 11K levels in a flash. Usually that's how bottoms are made in markets, even before one can blink , bottom is hit and price moves back up again. Now in last 3 days Nifty has moved more than 350 points. Going forward 11200-220 is going to be a very crucial level. If Nifty can conquer 11220 then it could open gateways to much higher levels. Regular readers of this blog are aware that we have been bullish on the markets ever since it hit 10780 and highlighted few technical reason ( time cycles and the fact that weekly RSI had hit 33) to support our theory. We also mentioned that if certain things played out then could see a strong bullish move of 1500-2000 points from the recent lows. We still hold on to our view. However mind you, volatility could remain high and choppy moves could be seen in plenty.
In summary, keep an eye on 11175-11200, strong and sustainable move above this level will further strengthen our view and could push Nifty much higher from these levels on the other hand 10950-10900 should act as a very very strong support now and in case of a breach (chances look small) we could again dip towards 10800-750 levels.
Happy Trading!
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