Medium Term Trend: ↑ UP (Changes to down below 11400)
Sideways : Nifty again slipped more than 100+ points from its day high and failed to hold on to 11900 levels. It made a low of 11820 levels and closed at 11840 levels (down 75 points).
Like we have been saying in last few updates, even though market remains in an uptrend from medium term perspective, there is a likleyhood that in short term or near term we could see some sideways trading or some weakness. In last 2-3 days nifty has slipped to 11800 levels from its high of 12K+ levels. Nifty had put up more than 500+ points from low of 11500 in 4-5 days hence a correction was always overdue. On a broader time frame we have seen 1500+ points rally from lows of 10600 so a timewise ( if not price wise) correction is always due.
Going forward too we can see some more weakness or sideways trading from current levels however looking at current fall its not looking like an impulsive move so chances of this correction extending below 11400-11500 looks remote for now. However if se see some sharp followup selling below 11800-11700 then we need to be cautious.
Overall we see Niftty eventually going back above 12000 & even12500 levels but before that we can see a period of volatility or sidways trading. it would be intresting to see if market does fall further from here and what is the manner of fall (sometimes the manner of fall tells a lot about market intention). Overall trend of market remains up as long as 11400 is held. Ccurrent correction can get over at any level between 11400-11900 and market can trade in a tight range doing nothing but once this correction gets over, we hould be seeing another leg on the upside.
No comments:
Post a Comment