Medium Term Trend: ↑ UP (Changes to down below 11050)
Downmove Continues : Nifty opened flat and traded above 11200 for most part of the day but failed to cross above its key resistance area of 11250 and shed 100+ points from its day high. It hit a low of around 11115 and closed at 11126, down 50 odd points.
Nifty has been trading weak since last 8-9 trading session (ever since it hit a high of 11700) and now has shed around 600 points from the highs it hit couple of weeks back. This continuos weakness in markets is raising doubts and questions if the recent high was just a pullback rally driven by corp rate cut news and now the markets have resumed its downtrend already. In our opinion, it would be too early to conclude that. Inspite of market showing weakness for last few sessions market remains in a uptrend ( for now) and till the time sustained trading is seen below 11050 levels , it would not be wise to bet on the short/bearish side.
Charts and technicals continue to point towards a possible uptrend (which has already started) and for now we are reading the fall from 11700 levels as a corrective fall of the 1000+ rise we saw from the lows of 10650.
In Nutshell, evern though markets continue to be weak and continue to move South, there are many indicators suggesting a probability of markets starting yet another bullish move from these levels hence it doesnt make sense to go short at current levels. If Nifty break below 11050-11K levels then we will have to see and probably re-analyse all data but for now nothing changes.
Happy Trading!
Downmove Continues : Nifty opened flat and traded above 11200 for most part of the day but failed to cross above its key resistance area of 11250 and shed 100+ points from its day high. It hit a low of around 11115 and closed at 11126, down 50 odd points.
Nifty has been trading weak since last 8-9 trading session (ever since it hit a high of 11700) and now has shed around 600 points from the highs it hit couple of weeks back. This continuos weakness in markets is raising doubts and questions if the recent high was just a pullback rally driven by corp rate cut news and now the markets have resumed its downtrend already. In our opinion, it would be too early to conclude that. Inspite of market showing weakness for last few sessions market remains in a uptrend ( for now) and till the time sustained trading is seen below 11050 levels , it would not be wise to bet on the short/bearish side.
Charts and technicals continue to point towards a possible uptrend (which has already started) and for now we are reading the fall from 11700 levels as a corrective fall of the 1000+ rise we saw from the lows of 10650.
In Nutshell, evern though markets continue to be weak and continue to move South, there are many indicators suggesting a probability of markets starting yet another bullish move from these levels hence it doesnt make sense to go short at current levels. If Nifty break below 11050-11K levels then we will have to see and probably re-analyse all data but for now nothing changes.
Happy Trading!
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