Medium Term Trend: ↑ UP (Changes to down below 11100)
Upward March Continues: : Nifty posted yet another day of strong move and closed at 11660 up 75 points.
Overall Nifty continues to move in line with our expectations and continue to scale new highs on daily basis. We have been recommending going long and advising strongly against entering into short positions for quite some time and for now the strategy seems to be paying rich dividends.
Now lets just take a step back and see the movements of last few days. Nifty had hit a high of 10695 few days back and from there it moved to 11090 in 10 trading sessions. Since then Nifty has been moving up (today was 7th day of upmove). If nifty goes on to cross 10695 levels in next couple of trading sessions then it will further strengthen the case of Nifty moving further up from here ( nifty almost crossed this level today hit a high of 10686 just 10 points short).
Having said this, though the uptrend remains on and is likely to get stronger in the times to come , there is always a likelihood of Nifty starting a corrective wave and pulling back slightly. Its beginning to get slightly overbought and the momentum is also falling ( inspite of strong upmoves we have seen in last 1-2 days) hence we dont rule a possibility of some sideways move or some sort of correction in days to come.It may come from current levels or Nifty can rise further 100-200 points and then correct but again, if the correction comes then it could provide an excellent buying opportunity yet again.
Happy Trading!
No comments:
Post a Comment