Medium Term Trend: ↑ UP (Changes to down below 11500)
Break Down: Nifty opened flat but quickly dropped below 12k levels. Weakness continued as the trading progressed and Nifty even broke below 11900 levels. It finally settled at 11921, down 100 points .
In the previous post we had mentioned if Nifty sustains above 12050-75 levels then it can hit higher levels howevever if we see weakness below 12K levels then we can drop to 11850-11900 levels again. Once again market played out exactly in our line with our predictions and dropped to 11890 levels once 12K level failed to sustain.
Having said this, we had also mentioned that overall trend of the market remains up and even if market drops down (in most likelihood) it is going to offer an excellent buying opportunity. One need to observe this fall carefully and enter long position when the downsing matures. In last couple of days markets did indicate that its probably ready to move up however it turned out to be false move and market has again dropped lower today.
This is the 5th consecutive friday that markets have crashed and closed down,its becoming a kind of trend to close markets deep in red on Fridays.
On the way down, 11800 is likely to offer strong support infact the entire band of 11700-11800 is a strong support zone. The overall trend remains up as long as 11500 is held intact. it would be intresting to see for how long and till what point the current correction stretches. Post this correction we expect Nifty to resume its upmove.
Things will change if fall keeps extending from here and goes on to break 11500 levels ( chances of that are pretty slim though).
Happy Trading
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