Medium Term Trend: ↓Down (Changes to up above 9800)
Nifty Tumbles: Weak global cues and weak crude forced Nifty to open with a gapdown around 9K levels. It further fell towards 8900 levels but managed to pull back to 9k levels again just before close.
9100-9150 was a good support for Nifty it was expected to hold and below it levels around 8900 were expected and Nifty almost achieved those level today itself. But since 9100 is broken now lets see where do we stand now.
Below is the 30 min chart of Nifty:
Inspite of breaking below 9100, Nifty is managing (till now) a higher low on the charts. Its only below 8850 that we will have a lower low. Another thing to watch out for is the positive divergence with RSI. Todays fall is not supported by RSI and it already dropped to levels last seen 8-10 days back when Nifty was trading around 8k levels. Both these things are positive .
One bad thing however is the 'island reversal' which appeared today on the charts, Previously (last Friday) nifty had opened with a gapup (from9000 to 9300) and today same gaup-up area is taken out by a gap-down. If todays gap-down area is not filled in next 2-3 trading session then it could have strong bearish implications.
Overall markets continue to see weakness emerging from 9100-9300 levels and inspite of hitting higher highs, buyers confidence is not returning but mind you it can change anytime.
For now if market manages to protect previous low sitting at 8850 levels and also fill todays gap-down (means move back above 9100 levels) then the chances of resuming uptrend will become strong again. Levels around 9300 are not invincible and markets have spent so much times there already hence ideally it should be broken on the upside ( timing However is something only market knows).
So in summary, 9100 was a crucial level and even though markets have moved below it, all is not yet lost for bulls. For a bullish scenario to play out from here, the lows around 8850 should hold and nifty should move back above 9100 level. If that happens in next couple of trading sessions then move towards 9500-10k levels is likely. Movement of last 8-10 days is looking like a channeled movement and probably a complex corrective and Nifty is likely to move higher once this corrective gets over. On the downside move below 8850 levels could push Nifty towards 8700 and break below 8700 could be really bearish for Markets.
Happy Trading.
Nifty Tumbles: Weak global cues and weak crude forced Nifty to open with a gapdown around 9K levels. It further fell towards 8900 levels but managed to pull back to 9k levels again just before close.
9100-9150 was a good support for Nifty it was expected to hold and below it levels around 8900 were expected and Nifty almost achieved those level today itself. But since 9100 is broken now lets see where do we stand now.
Below is the 30 min chart of Nifty:
 |
| Nifty 30 min chart |
Inspite of breaking below 9100, Nifty is managing (till now) a higher low on the charts. Its only below 8850 that we will have a lower low. Another thing to watch out for is the positive divergence with RSI. Todays fall is not supported by RSI and it already dropped to levels last seen 8-10 days back when Nifty was trading around 8k levels. Both these things are positive .
One bad thing however is the 'island reversal' which appeared today on the charts, Previously (last Friday) nifty had opened with a gapup (from9000 to 9300) and today same gaup-up area is taken out by a gap-down. If todays gap-down area is not filled in next 2-3 trading session then it could have strong bearish implications.
Overall markets continue to see weakness emerging from 9100-9300 levels and inspite of hitting higher highs, buyers confidence is not returning but mind you it can change anytime.
For now if market manages to protect previous low sitting at 8850 levels and also fill todays gap-down (means move back above 9100 levels) then the chances of resuming uptrend will become strong again. Levels around 9300 are not invincible and markets have spent so much times there already hence ideally it should be broken on the upside ( timing However is something only market knows).
So in summary, 9100 was a crucial level and even though markets have moved below it, all is not yet lost for bulls. For a bullish scenario to play out from here, the lows around 8850 should hold and nifty should move back above 9100 level. If that happens in next couple of trading sessions then move towards 9500-10k levels is likely. Movement of last 8-10 days is looking like a channeled movement and probably a complex corrective and Nifty is likely to move higher once this corrective gets over. On the downside move below 8850 levels could push Nifty towards 8700 and break below 8700 could be really bearish for Markets.
Happy Trading.
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