Medium Term Trend: ↑ UP (Changes to down below 11500)
12K sustained: Nifty opened above 12050 levels but no rate cut action from RBI pulled the markets down a little and it dropped to 12K levels. it finally closed at 12018, down 25 points.
In last update we had mentioned that even though the trend remains on the upside there is a chance that markets can drop a little from the current levels to 11850-11900 levels. Nifty indeed dropped towards 11900 yesterday but held on it and closed back above 12K levels.
Now the latest view is that since we have closed above 12K levels for 2 days there is a chance that new highs can be tested again ( those arent too far away anyways just 100-150 points from current levels). If nifty sustaines above 12050-12075 levels then its very likely that it will make a dash towards 12150-12250 levels in coming days, on the contrary if we see weakness below 12K levels then there is a chance that we go back to 11850-11900 levels once more and then make a move towards new high ( in any case we are going towards 12200).
Please keep in mind that in last few days we are seeen a steady flow of bad news one after another ( GDP nos, no rate cut etc) but still markets are howering around 12K levels which testifies the inherent strength in the markets.
Like we have been saying , markets remains in a uptrend so even if we see a downfall, it could be an excellent buying opportunity. As long as the important support levels are not broken one should refrain in shorting this market.
Happy Trading!!
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