Medium Term Trend: ↓ Down (Changes to Up above 11075)
11k Holds: Nifty opened positive around 11025 levels and spent whole day consolidating between 11020-11060 levels. it finally closed at 11036, up 30 points.
Nifty overall movement remains on expected line and regular reader of this blog are aware that when markets were falling, we were continuously maintain a bullish view and were expecting Nifty to move from 10700 levels. Nifty has moved around 300-350 points from the lows already and now needs to move above 11075 level ( which is our pivotal level for medium term) to open up further upside.
We had also mentioned that the move from lower levels needs to be impulsive and sharp however the upmove is not as sharp ( till now) as we were expecting so there could be a possibility of some sharp and sudden choppy moves on the downside but those should buying opportunity only.
For immediate term 11075 and 11250 are 2 criticals levels to watch out for and crossing these levels would open further upside towards 11400-500 however if Nifty fails to break out 11075 soon and take another 2-3 sessions to do so then we can expect another round of sell off and a possible dip towards 10800 levels.
Most oscillators on daily charts have crossed over to positive territory and we continue to see strength building up on short term charts as well.
Many are asking to update the medium term chart/view on Nifty which we will do pretty soon but as far as the chart reading goes (as of now), there are only 2 strong possibility a) Either Nifty consolidates around these levels for 4-5 weeks more and then start moving up shortly ( towards mid/end October) or b) Nifty start moving up immediately from current levels itself.
So its just a matter of timing. Markets could start breaking up on the upside immediately or it might pause and spend little more time here and then start moving up. Sustained downside is not looking possible ( basis current picture) however things can change anytime and if tomorrow the picture changes then we will have to change our view accordingly as well but as of now we can see only 2 options and both are positive.
Happy Trading
11k Holds: Nifty opened positive around 11025 levels and spent whole day consolidating between 11020-11060 levels. it finally closed at 11036, up 30 points.
Nifty overall movement remains on expected line and regular reader of this blog are aware that when markets were falling, we were continuously maintain a bullish view and were expecting Nifty to move from 10700 levels. Nifty has moved around 300-350 points from the lows already and now needs to move above 11075 level ( which is our pivotal level for medium term) to open up further upside.
We had also mentioned that the move from lower levels needs to be impulsive and sharp however the upmove is not as sharp ( till now) as we were expecting so there could be a possibility of some sharp and sudden choppy moves on the downside but those should buying opportunity only.
For immediate term 11075 and 11250 are 2 criticals levels to watch out for and crossing these levels would open further upside towards 11400-500 however if Nifty fails to break out 11075 soon and take another 2-3 sessions to do so then we can expect another round of sell off and a possible dip towards 10800 levels.
Most oscillators on daily charts have crossed over to positive territory and we continue to see strength building up on short term charts as well.
Many are asking to update the medium term chart/view on Nifty which we will do pretty soon but as far as the chart reading goes (as of now), there are only 2 strong possibility a) Either Nifty consolidates around these levels for 4-5 weeks more and then start moving up shortly ( towards mid/end October) or b) Nifty start moving up immediately from current levels itself.
So its just a matter of timing. Markets could start breaking up on the upside immediately or it might pause and spend little more time here and then start moving up. Sustained downside is not looking possible ( basis current picture) however things can change anytime and if tomorrow the picture changes then we will have to change our view accordingly as well but as of now we can see only 2 options and both are positive.
Happy Trading
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