Medium Term Trend: ↓Down (Changes to up above 9900)
Nifty Exhibiting Strength: Nifty opened around 8500 and went on to cross 8700. There was some usual volatility and Nifty threatened to gave up all its gain but fnally managed to close above 8600 and added 300+ points in the process.
Yesterday we had mentioned that Nifty seems to have broken a falling wedge (which is a bullish pattern) hence the chances are that we see some sharp movement from here. We had also advised against going short in this markets and instead advocated going long on dips. Nifty did touch almost 8800 levels today itself.
Also we have been mentioning that correction seems to be done around 8500 levels (Mondays fall had raised a doubt but nifty has managed to climb backup again so it can be ignored). Last weekly close was above 8500 and if Nifty can close again above 8500 ( 8800 preferably) then we will have positive weekly close in many weeks. Then a monthly close above these levels will be a strong indication that perhaps bottom is done already.
So will keep it short today, overall view remains same, the current thrust from the ralling wedge has the capacity to push markets above 9k levels so avoild initiating shorts (as long as 8100-8200 holds). If Nifty manages to hold/move back above 8500-9000 range then the chances of it starting a fresh trend on the upside will increase. Volatility is still pretty high (VIX is 70+ which is insane). Some stability can be expected once VIX start trading below 40 ( which is still very far away). Remember markets will find its bottom and start a trend on the upside much before this Corona issue start to dissipate. Markets always prempts and acts in advance ( thats what make them intresting isnt it?).
From trading perspective we did enter long around 8K levels yesterday,To join our free algorithm based buy/sell whatsapp service during market hours, pls click below link or whatsapp @ 9319321906
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