Medium Term Trend: ↓Down (Changes to up above 9900)
Volatility Continues: Nifty opened strong and even touched 9K+ levels, but gave up all the gains to close flat at 8660 levels.
Nifty might have given up 400-500 point from days high but important thing is that markets have managed to close above 8500 levels. Second successive weekly close has come above 8500 levels which is a positive sign. Though we would have liked to see a weekly close above 8800 levels, nifty did hit that level intraday but couldnt manage to hold on to it. profit booking by traders once the rate cut news was out kept the selling pressure up. Rate cut news was more or less factored in prices already hence markets ignored it today.
Going forward , we need to see if markets is managing to hold on to 8000-8500 levels in coming days. if it does then chances of markets making another move towards 10K is there but if weakness resumes below 8500 and then below 8k levels then probably we are heading towards deeper correction which is likely to stay for some time to come. For now, chances of first scenario playing out is higher than the second but anything is possible in markets so lets see.
Nutshell, short term trend has changed to UP and a move 9900 will change the medium term to UP as well, so we need to see if short term trend has the power and momentum to change the medium term too. Trading wise will still recommend avoiding short ( as long as 8K level holds).
Volatility Continues: Nifty opened strong and even touched 9K+ levels, but gave up all the gains to close flat at 8660 levels.
Nifty might have given up 400-500 point from days high but important thing is that markets have managed to close above 8500 levels. Second successive weekly close has come above 8500 levels which is a positive sign. Though we would have liked to see a weekly close above 8800 levels, nifty did hit that level intraday but couldnt manage to hold on to it. profit booking by traders once the rate cut news was out kept the selling pressure up. Rate cut news was more or less factored in prices already hence markets ignored it today.
Going forward , we need to see if markets is managing to hold on to 8000-8500 levels in coming days. if it does then chances of markets making another move towards 10K is there but if weakness resumes below 8500 and then below 8k levels then probably we are heading towards deeper correction which is likely to stay for some time to come. For now, chances of first scenario playing out is higher than the second but anything is possible in markets so lets see.
Nutshell, short term trend has changed to UP and a move 9900 will change the medium term to UP as well, so we need to see if short term trend has the power and momentum to change the medium term too. Trading wise will still recommend avoiding short ( as long as 8K level holds).
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