Medium Term Trend: ↑ UP (Changes to down below 11500)
Upmove resumes: Nifty opened in positive zone around 11950 levels and kept on inching up through out the day. It closed at 12080 up a whopping 165 points.
In previous post we had mentioned a possibility of Nifty heading for an another short term correction ( since 11970 was effectively broken). However we had also mentioned that no shorts are advised at this stage and long positions should be entered once 12K is taken. 12K was taken out in the morning session itself and after that markets putup another 80 points or so.
When markets are in a uptrend its very difficult to say for how long and how deep the corrections will lasts. Correction in strong uptrend can finish even in hours if not in days.In such markes one is better off buying at every available opportunity. Now the way things are unfolding it seems markets are in for a new all time high. In any case sensex has already broken above its all time high so Nifty is likely to follow suit.
This time Nifty has moved up with a strong momentum hence the chances of reclaiming 12100 are pretty high. Its likely that Nifty can test 12200-12300 levels however from the technical perspective there is a strong chance of Nifty begining another round of correction which might bring it again towards 11900-12K levels.
There are quite a few negative divergences which are suggesting that market may not be able to go much higher immediately.However again this doesnt mean that one should be looking to go short at current or above 12100. Its very much possible that markets just runup from here. So either way market has to go up either we consolidate first or then move up or we move up straightaway. Unless 11500 is broken we dont see any possibility of any significant correction in near term.
Happy Trading!
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