Medium Term Trend: ↑ UP (Changes to down below 11400)
Weakness resurfaces : Nifty failed to sustain 11970-950 levels and even dropped below 11900 levels during intraday trading. It made a low of 11880 levels and closed at 11915 levels down 55 points.
In previous post we had mentioned that if Nifty hold above 11970 then we can expect anoher leg on the upside. Nifty traded around 11970 level for most part of the day yesterday and today it broke below the level. We had also mentioned that Bears need to take out 11950 levels (11900 preferably) for some sort of bearish scenario to emerge. We had also mentioned that since last 2 weeks , markets are seeing a sellout on Friday.
Markets did see a selloff today again ( in line with last 2 weeks trend) and bears also managed to broke below 11900 ( even though closing is above 11900 levels). Considering all these things ( failure to hold 11970-11950 levels and breaking of 11900 levels), its very much likely that for a very short term markets have again entered a small bearish or corrective zone.
However that doesnt mean that a trend down on the downside has started, all it means is that market may take anothr pause and not break above 12K levels in jiffy. Most daily momentum indicators are also crossed over in negative terrritory.
There is possibility of some sort of corrections from here hence long positions should be exited for now and fresh longs are advised only above 12K levels. Overall trend of markets still remains up so no shorts are advised at current levels as markets can complete this correction anytime and stage a V shaped recovery. If markets does fall from here then it could offer an excellent buying opportunity once again.
Happy Trading!
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