Medium Term Trend: ↑ UP (Changes to down below 10583)
Sharp Plunge : Nifty opened weak around 11K levels and keep pushing its way down and even tested 10800 levels just before the close. It closed at 10817 with a substantial loss of 185 points.
We have been mentioning since last few days (weeks actually) about Nifty making a bottom around 10700-10800 and starting a new leg on the upside. Last Friday, Nifty even gave a close above 11075 levels ( though by just one point) which was the pivotal point as per us from the medium term perspective. However today Nifty fell by a whopping 200 points and in last 2 days Market has lost around 250+ points but still that doesn't change our view. We continue to maintain that the volatility we are witnessing is just part of the bottoming out process. Now this may stop tomorrow or might continue for few more trading sessions but till now there is nothing on the charts which is suggesting that market is opening a fresh down move.
In yesterdays post we had clearly mentioned that any fresh down move can only be expected below 10800 levels only. Today market has taken support exactly at 10800 levels (infact it closed around 10800 so will know in next 1-2 sessions if 10800 indeed proves to be a crucial support). Bulls do not have to worry as long as 10800 stands. Only once market start trading below 10800 can we expect some more weakness and even then as long as 10583 is intact, the chances of market bottoming out at current levels and making a dash towards higher level is still there.
In Nutshell, don't be scared of the volatility, its highly likely that its just part of the bottoming out process which could push Nifty on the upside again. Holding 10800 could push Nifty back to 11K+ levels. However, in case Nifty start trading below 10800 levels and sustain there for more than 30-45 minutes then probably we could see some more weakness and Nifty drops to 10700-650 levels.
Happy Trading!
Sharp Plunge : Nifty opened weak around 11K levels and keep pushing its way down and even tested 10800 levels just before the close. It closed at 10817 with a substantial loss of 185 points.
We have been mentioning since last few days (weeks actually) about Nifty making a bottom around 10700-10800 and starting a new leg on the upside. Last Friday, Nifty even gave a close above 11075 levels ( though by just one point) which was the pivotal point as per us from the medium term perspective. However today Nifty fell by a whopping 200 points and in last 2 days Market has lost around 250+ points but still that doesn't change our view. We continue to maintain that the volatility we are witnessing is just part of the bottoming out process. Now this may stop tomorrow or might continue for few more trading sessions but till now there is nothing on the charts which is suggesting that market is opening a fresh down move.
In yesterdays post we had clearly mentioned that any fresh down move can only be expected below 10800 levels only. Today market has taken support exactly at 10800 levels (infact it closed around 10800 so will know in next 1-2 sessions if 10800 indeed proves to be a crucial support). Bulls do not have to worry as long as 10800 stands. Only once market start trading below 10800 can we expect some more weakness and even then as long as 10583 is intact, the chances of market bottoming out at current levels and making a dash towards higher level is still there.
In Nutshell, don't be scared of the volatility, its highly likely that its just part of the bottoming out process which could push Nifty on the upside again. Holding 10800 could push Nifty back to 11K+ levels. However, in case Nifty start trading below 10800 levels and sustain there for more than 30-45 minutes then probably we could see some more weakness and Nifty drops to 10700-650 levels.
Happy Trading!
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