Medium Term Trend: ↑ UP (Changes to down below 11050)
Strong Rally : Nifty opened flat around 11120 levels and even dropped below 11090 levels during intraday however it soon bounced back and didnt look back after that. It rose more than 230 points from day low and closed at 11310 levels. Up 185 points.
Like we have been saying since last so many days that market remains in uptrend and all dips should be utilised to go long. We had also mentioned that as long as levels of 11050 is intact the uptrend remains intact as well. Today market almost touched our medium term pivotal point and bounce from that region to give a rally of 200 points.We also mentioned that we see the current fall (from 11700 levels) as a retracement of recent sharp rally ( from 10650 to 11700) and once the retracement is complete market will start another leg on the upside.
Now that we have seen a sharp move from 11100 levels, can we assume that pullback is complete and market is ready to open another leg on the upside and touch higher levels? well the answer to this question is probably yes. We need to see if markets can cross 11400-440 levels in next 2-3 trading sessions and if that happens then we can say with reasonably surety that a fresh leg on the upside is opened On the other hand if we see some hesistation around 11400 levels then we can see one more dip towards 11150-11200 levels ( however chances of that happening appears low as of now).
In Nutshell, market remains in uptrend and the retracement/consolidation can last for few more days but as long as 11050 is intact there is a strong likelihood of market moving sharply from these levels hence we do not recommend going short for now ( going long on dips should be the only trading plan in the present scenario).
Happy Trading!!
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