Medium Term Trend: ↑ UP (Changes to down below 11770)
Lacklustre trade continues: Nifty saw another day where it did absolutely nothing. Opened flat, traded flat and closed flat.
In the last post we had mentioned:-: "the way markets are trading since last couple of days is suggesting that probably some bit of tiredness or lethargy is creeping in the markets". Well the tiredness continues even today and market showed that its in no mood to move (up or down).
So for now the same view stands, Nifty has more or less achieved our immediate targets but that doesn't mean it can not move further up from here , it definitely can but for that to happen it needs a strong move above 12400-425 levels. In the recent times nifty has seen a steady rise from 11900 levels to 12400 ( almost 500 points move in last 7 days) so its very much possible that we see some sort of correction in next -12 days.
On technicals charts Nifty is giving some bit of negative divergence and on weekly charts its approaching overbought zone. Its nearing 70 and the last time it touched 70 was way back in June'19 around election time. However that doesn't mean that one start shorting Nifty, absolutely not. All it means is that if correction comes then one should be ready it ( after all it can turn into a great buying option once again). On the downside 12300-250 will continue to provide support and it remains to be seen if it holds should the markets decide to test it again.
The most important indicator is still very much in bullish zone and till the time it reverses it would not be wise to bet on short side and that indicator is "price". Nifty is still very strong on price charts and till that reverses one has to assume that the uptrend is intact. Its only when we see reversal on price charts, should we start looking towards other side ( and for now its far far away).
So to summarize, let Nifty break 12275-12425 zone , How nifty trades beyond this zone will determine the near term outlook of the Nifty. as a trader its advisable to sit out till this zone is played out by the markets.
Happy Trading!
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