Medium Term Trend: ↓Down (Changes to up above 10900)
Tanks again: After showing some respite on Friday, Nifty tanked once again to close around 9200 down ~750 points.
Nifty today saw a sharp dip with a surge in volatility. VIX is now touching 60 which is extremeley extremely high. It needs to cool down to 25-30 levels then only some normalcy can be expected to return to markets.
Keeping the volatility aside and just looking at the big picture, the overall view still remain same. For a larger time frame levels around 9k offers good support. Since volatility is so high low of friday can also be referred hence 9000-8500 now becomes the level which shouldnt be broken in near term. Like we mentioned in previous post, around 9k Levels nifty has achieved equality with 2008 fall ( and with most other major falls we have seen in history of Indian markets like that of 2000 & 1993). Today Nifty has come down to test this level once again & its possible we go slightly lower again tomorrow ( the way US & global markets are tanking). But once again , if market drops below 9K , then it should be utilised to add good quality stock to your portfolio.
However in case market start trading below 8500 and we get a close (2 preferably) below this level then it will be unprecedented and markets will enter unchartered waters. somehting we have never witnessed in the entire history of our markets. Though anything is possible in markets, the levels of 8500-9000 should hold (unless world is about to collapse).
In Nutshell, since VIX is trading so high it makes sense to stay from trading for some time ( doesnt matter which side you trade SL will be very big) and instead utlise your capital to buy good quality stock at these levels ( with a stop at 8500). Markets could and should take support at 8500-9000 levels and this level/range is likely to hold but in case it breaks then one should totally step aside ( even form investing perspective).
Happy Trading!
Tanks again: After showing some respite on Friday, Nifty tanked once again to close around 9200 down ~750 points.
Nifty today saw a sharp dip with a surge in volatility. VIX is now touching 60 which is extremeley extremely high. It needs to cool down to 25-30 levels then only some normalcy can be expected to return to markets.
Keeping the volatility aside and just looking at the big picture, the overall view still remain same. For a larger time frame levels around 9k offers good support. Since volatility is so high low of friday can also be referred hence 9000-8500 now becomes the level which shouldnt be broken in near term. Like we mentioned in previous post, around 9k Levels nifty has achieved equality with 2008 fall ( and with most other major falls we have seen in history of Indian markets like that of 2000 & 1993). Today Nifty has come down to test this level once again & its possible we go slightly lower again tomorrow ( the way US & global markets are tanking). But once again , if market drops below 9K , then it should be utilised to add good quality stock to your portfolio.
However in case market start trading below 8500 and we get a close (2 preferably) below this level then it will be unprecedented and markets will enter unchartered waters. somehting we have never witnessed in the entire history of our markets. Though anything is possible in markets, the levels of 8500-9000 should hold (unless world is about to collapse).
In Nutshell, since VIX is trading so high it makes sense to stay from trading for some time ( doesnt matter which side you trade SL will be very big) and instead utlise your capital to buy good quality stock at these levels ( with a stop at 8500). Markets could and should take support at 8500-9000 levels and this level/range is likely to hold but in case it breaks then one should totally step aside ( even form investing perspective).
Happy Trading!
No comments:
Post a Comment