Medium Term Trend: ↑UP (Changes to down below 11750)
Nifty Consolidates: Nifty opened below 12200 levels today and traded around 12150 levels for most part of the day today. It threatened to move down below 12150 many times but didnt and finally closed at 12175 levels down 25 points.
Yesterday we had mentioned that overall trend of the Nifty has changed to 'Up' now and the market is likely to find support at 12100-12150 zone ( which was the previous resistance zone). Today market did find support at 12150 zone and the level held through out the day (inspite of the fact that dow future was trading almost 200 points down). We had also mentioned about the possibility of Nifty making an inverted H&S pattern which seems to have broken on the upside and today markets came down to test the neckline of the same.
We now need to observe if the lows of todays are protected tomorrow as well and markets use this level ( 12150) as a base to propel itself towards higher level. Holding 12150 and crossing above 12250 will further confirm that we are on right track. However if we see weakness tomorrow or next few trading session and market goes on to break below 12100 levels then probably we will have to start being cautious again.
In summary, no major update today and the views of yesterday still hold. If market hold 12100-12150 and goes on to break above 12250 then all time highs are likely to be tested again and if 12100-12150 doesn't hold then ? Well..will cross that bridge when we get there.
Yesterday we had mentioned that overall trend of the Nifty has changed to 'Up' now and the market is likely to find support at 12100-12150 zone ( which was the previous resistance zone). Today market did find support at 12150 zone and the level held through out the day (inspite of the fact that dow future was trading almost 200 points down). We had also mentioned about the possibility of Nifty making an inverted H&S pattern which seems to have broken on the upside and today markets came down to test the neckline of the same.
We now need to observe if the lows of todays are protected tomorrow as well and markets use this level ( 12150) as a base to propel itself towards higher level. Holding 12150 and crossing above 12250 will further confirm that we are on right track. However if we see weakness tomorrow or next few trading session and market goes on to break below 12100 levels then probably we will have to start being cautious again.
In summary, no major update today and the views of yesterday still hold. If market hold 12100-12150 and goes on to break above 12250 then all time highs are likely to be tested again and if 12100-12150 doesn't hold then ? Well..will cross that bridge when we get there.
Happy Trading!!
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