Medium Term Trend: ↓ Down (Changes to Up above 11365)
Bounce Continues: Nifty opened strong at 11100 and went to touch a high of 11175 some profit booking at the end pushed it back to 11100 and Nifty finally closed at 11110 (up 77 points).
We have been mentioning that though Nifty is week we can see a bounce from 10850 levels and we did see a strong bounce yesterday and it continued even today. Good thing about todays move is that it managed to cross 11125 and closed above 11100 which is indeed a positive sign for the bulls. Last week when Nifty broke below 10985 we had mentioned that even long term trend has been changed to down. Now usually whenever long term support is taken out the fall we see is vicious however in this case even though Nifty fell to 10770 the fall wasn't a big one and that is on of the reason we were suspecting a bounce from 10850 levels.
Yesterday we had mentioned that basis one day move its too early to conclude if the down move is over and Nifty has started another leg on the upside. However now that weekly close has come above 11100 levels, the probability of Nifty starting a fresh upmove from these levels has become slightly stronger. If Nifty can sustain 11100 levels in coming sessions then probably we can see testing of 11300-350 levels and once 11350 level is surpassed then this upside move will gain further momentum.
In summary, since the weekly close has come above 10985-11K zone, we are assuming that long term trend is intact ( inspite of couple of daily close below this level) and we further need to observe and see if this level is sustained and if it does then we are moving much higher from here however if weakness starts then 10925-10950 level should offer some very good support and if somehow it gets broken then we are looking at 10600 levels in near term. One thing is clear, we don't see any point of shorting this market at this point (as long as 10900 is intact).
Markets are likely to be volatile going forward and an intraday or overnight fall of 150-200 points can not be ruled out hence all SLs needs to be adjusted accordingly.
Happy Trading!
Bounce Continues: Nifty opened strong at 11100 and went to touch a high of 11175 some profit booking at the end pushed it back to 11100 and Nifty finally closed at 11110 (up 77 points).
We have been mentioning that though Nifty is week we can see a bounce from 10850 levels and we did see a strong bounce yesterday and it continued even today. Good thing about todays move is that it managed to cross 11125 and closed above 11100 which is indeed a positive sign for the bulls. Last week when Nifty broke below 10985 we had mentioned that even long term trend has been changed to down. Now usually whenever long term support is taken out the fall we see is vicious however in this case even though Nifty fell to 10770 the fall wasn't a big one and that is on of the reason we were suspecting a bounce from 10850 levels.
Yesterday we had mentioned that basis one day move its too early to conclude if the down move is over and Nifty has started another leg on the upside. However now that weekly close has come above 11100 levels, the probability of Nifty starting a fresh upmove from these levels has become slightly stronger. If Nifty can sustain 11100 levels in coming sessions then probably we can see testing of 11300-350 levels and once 11350 level is surpassed then this upside move will gain further momentum.
In summary, since the weekly close has come above 10985-11K zone, we are assuming that long term trend is intact ( inspite of couple of daily close below this level) and we further need to observe and see if this level is sustained and if it does then we are moving much higher from here however if weakness starts then 10925-10950 level should offer some very good support and if somehow it gets broken then we are looking at 10600 levels in near term. One thing is clear, we don't see any point of shorting this market at this point (as long as 10900 is intact).
Markets are likely to be volatile going forward and an intraday or overnight fall of 150-200 points can not be ruled out hence all SLs needs to be adjusted accordingly.
Happy Trading!
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