Medium Term Trend: ↑ UP (Changes to down below 11100)
Rangebound moves: : Nifty opened flat then dropped 70-80 points intraday and went on to touch 11500 levels. However it moved sharply again and moved towards 11600 levels once again and closed flat at 11580 levels.
We had mentioned few days back that after touching 11700 we should see some pullback/volality and a downmove so it make sense to book profit and exit for some time but keep in mind we never recommended going short. market indeed has dropped around 200 points from 11700 now.
Now it seems market have started a corrective move exactly from 11700 levels ( which was the previous top as well) so on daily charts we have a double top like pattern.However the downmove post 11700 ( last 2-3 days) is not indicating (yet) that markets have opened a big or trending leg on the downside hence the overall trend remains on the upside and it needs to be seen for how long and how far this corrective move can stretch. Like we mentoned in the previous posts, this corrective move on the downside can extend even upto 11200-11100 levels and even then the uptrend will remain intact.
Now we are not saying that markets are bearish and one should open a short position, all we are saying is that one should wait for this corrective move to end and the price confirmation is visible on the charts then go long.
Trading position should always be on the direction of main trend. In this market, right now, the main trend is on the upside and therefore a trader should always be looking at opportunities to go long only.If you are not convinced about going long then sit tight but dont go short.
In nutshell, It seems market have completed some small wave on the upside and the shortterm corrrection/sideways movement is on ( which can finish here or even extend till 11200 levels). If we some fall from here then it could very prove to be yet another opportunity to go long so keep your eyes open. Till now there is no indication on the charts that this downmove can extend beiyond 11100 levels but in case market does fall and 11100-111200 is breaached then we will see and anayse further but like we said chances of that happening is not looking very strong (till today).
Wish everyone a very Happy and Prosperous Diwali.Please trade well and Trade Wisely..
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