Medium Term Trend: ↓ Down (Changes to Up above 11365)
Strong Bounce Back: Nifty opened at 10900 levels and dropped to 10850 quickly but saw a strong support in the region which lifted markets all the way to 11050 ( more than 200+ rally). it finished strong at 11032 levels up 175 points.
Yesterday we had categorically mentioned that even though markets are in downtrend 10850 is the area from where we can expect a bounce and that's exactly what we witnessed today. There were quite a few technical factors indicating towards a possible bounce from these levels.
Now that the bounce has come and Nifty has moved back above 11K levels can we assume that downmove is over and markets are ready for an fresh upmove? answer to this question is yes it can but its too early to conclude anything. One day bounce amidst a strong downmove can not be conclusive. We need to see further strength above 11100 and 11125 levels to even start thinking about a fresh upmove. If Nifty can cross and sustain 11125 then we can probably see some more strength returning in the markets, on the other hand if markets fails to do that and break below 10925 levels then we are heading towards 10600 for sure.
In Nutshell, keep an eye on 11125 levels. Markets crossing and sustaining above 11125 will be a positive sign and on the downside 10950-925 should offer significant support for time being. If 10925 breaks then we are headed lower once again. If markets can manage to cross 11125 and 11360 after that then we can hope to see 12K levels once again.
Happy Trading
Strong Bounce Back: Nifty opened at 10900 levels and dropped to 10850 quickly but saw a strong support in the region which lifted markets all the way to 11050 ( more than 200+ rally). it finished strong at 11032 levels up 175 points.
Yesterday we had categorically mentioned that even though markets are in downtrend 10850 is the area from where we can expect a bounce and that's exactly what we witnessed today. There were quite a few technical factors indicating towards a possible bounce from these levels.
Now that the bounce has come and Nifty has moved back above 11K levels can we assume that downmove is over and markets are ready for an fresh upmove? answer to this question is yes it can but its too early to conclude anything. One day bounce amidst a strong downmove can not be conclusive. We need to see further strength above 11100 and 11125 levels to even start thinking about a fresh upmove. If Nifty can cross and sustain 11125 then we can probably see some more strength returning in the markets, on the other hand if markets fails to do that and break below 10925 levels then we are heading towards 10600 for sure.
In Nutshell, keep an eye on 11125 levels. Markets crossing and sustaining above 11125 will be a positive sign and on the downside 10950-925 should offer significant support for time being. If 10925 breaks then we are headed lower once again. If markets can manage to cross 11125 and 11360 after that then we can hope to see 12K levels once again.
Happy Trading
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