Medium Term Trend: ↑ UP (Changes to down below 11770)
Finding its feet: After a horific black Monday, Nifty stablised slightly today. Infact it opened strong at 12150 levels but gave up around 100 points to close at 12050. Up 50 points.In last post we had mentioned that markets remained strong and the probability of Nifty moving up from current levels has increased. We had also mentioned that Its likely that sideways/corrective trend is on verge of completion and if 12150-12190 holds then Nifty can move up from current levels.
On Monday markets broke this range in the first 30 mins itself, settting themselves for an extended fall. Once 12150 was broken 12K levels was on card which was achieved in a flash. Now inspite of such a big fall the overall story for Nifty remains intact. Its just that markets will now probably taking a different route to reach its destination.
Nifty has a major support area at 11975-12K and 11880 below that and finally at 11770-11800. In coming days its possible that market tries to find support at 11975 levels but in case this level breaches then markets can fall some more towards 11800-11900 levels. We continue to believe that overall trend of market remains strong and positive and the current fall should not be construed as sign of weakness. This could just be a temporary setback and once market complete the current consolidation move (around 11800-12K range) it could once again start moving up with a great force.
In nutshell, we were expecting markets to move from 12100-12200 range however same got broken and Nifty has slipped to lower range but overall nothing changes and its actually good for the health of the markets as it will help nifty get rid of weaker hands.Now since the fall from 12300 to 12K is pretty sharp , its possible that markets spend some time consolidating at current levels but that doesnt mean that one should go short. recovery or moveup ( whenever it starts) from here can be very sharp so keep that in mind always.
Happy Trading!
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