Medium Term Trend: ↓Down (Changes to up above 9800)
Held Yesterdays low: Nifty opened weak around 8850 levels but didn't stay there long. It moved cautiously and hit a intraday high of around 9050 levels and finally closed around 9k levels up 70 odd points.
In previous post we had mentioned that weakness or fall from 9250 level has broken the upward momentum and if we see further weakness below todays low ( 8850) then nifty can fall even more. On the other hand if we see a fast retracement above 9100-9150 levels then nifty will be back on track and can move back again above 9500 and higher levels.
Today Nifty did protect yesterdays low and more importantly the gap zone which stands at 8800-8900 levels, is protected too. Having said the fall yesterday has broken the momentum for immediate term and Nifty needs to move back again above 9150 levels to signal resumption of momentum/Upmove. Today Nifty's move from 8850 appeared slow and momentum/force was missing which could be due to weekly expiry but still it could be a indicator that its just a pullback rally. If Nifty fails to cross above 9100-9150 levels then we can see another wave down towards 8800 levels.
Overall, from a long term perspective, we continue to believe that Nifty has completed (or is in process of completing) a major correction around 8500 levels, though we did fall below this level but the weekly and monthly close always came above 8500 levels which is validating our views (for now atleast).
For next 1-2 trading sessions one need to see if nifty is able to cross 9100-9150 with momentum and force and if that happens then we can hope for the resumption of up-move towards 9500 and 9800 levels. On the other hand sideways or lethargic movement below 9100-9150 levels could once again push nifty back to 8800 or lower levels once again. We continue to advise against going short in this market but look to enter longs only at crucial breakout zones.
Happy Trading.
Held Yesterdays low: Nifty opened weak around 8850 levels but didn't stay there long. It moved cautiously and hit a intraday high of around 9050 levels and finally closed around 9k levels up 70 odd points.
In previous post we had mentioned that weakness or fall from 9250 level has broken the upward momentum and if we see further weakness below todays low ( 8850) then nifty can fall even more. On the other hand if we see a fast retracement above 9100-9150 levels then nifty will be back on track and can move back again above 9500 and higher levels.
Today Nifty did protect yesterdays low and more importantly the gap zone which stands at 8800-8900 levels, is protected too. Having said the fall yesterday has broken the momentum for immediate term and Nifty needs to move back again above 9150 levels to signal resumption of momentum/Upmove. Today Nifty's move from 8850 appeared slow and momentum/force was missing which could be due to weekly expiry but still it could be a indicator that its just a pullback rally. If Nifty fails to cross above 9100-9150 levels then we can see another wave down towards 8800 levels.
Overall, from a long term perspective, we continue to believe that Nifty has completed (or is in process of completing) a major correction around 8500 levels, though we did fall below this level but the weekly and monthly close always came above 8500 levels which is validating our views (for now atleast).
For next 1-2 trading sessions one need to see if nifty is able to cross 9100-9150 with momentum and force and if that happens then we can hope for the resumption of up-move towards 9500 and 9800 levels. On the other hand sideways or lethargic movement below 9100-9150 levels could once again push nifty back to 8800 or lower levels once again. We continue to advise against going short in this market but look to enter longs only at crucial breakout zones.
Happy Trading.
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