Medium Term Trend: ↓Down (Changes to up above 9800)
Yesterday we had mentioned that short term trend continues to be on UP for now (inspite of 100 points slippage from 9380 to 9280 levels) and its likely we see some more gain from these levels. Today Nifty was trading nervously around 9300 ( which has proven to be a stubborn level in short term) but finally managed to pulled it off. Now couple of very important things to note.
Levels around 9300-9350 have become a very obvious resistance hence its not surprising that market has moved above it however in such cases its not very unusual or uncommon to witness a 'false breakout', that is market moves above resistance to creates an impression that its broken and then again moves down. So this is something we should keep in mind going forward and should look out for cues (incase this turns out to be a false break or bull trap).
Secondly on weekly and daily charts market is continuously forming shooting star/inverted hammer/Gravestone doji kind of patterns. These patterns has the power to start a new short term trend on either side. Friday and Monday Nifty had formed 'gravestone doji' and today we again have 'shooting star/hanging man'.
Appearance of shooting star after a long consolidation and at top area ( above key resistance level) can again be bearish (but only if lows of previous days are breached). In case Nifty break below 9260-75 levels again then that would be the time to get cautious once again. Till then higher levels around 9500-9700 are still very much possible from here.
In Summary, market is approaching critical levels and a further push towards 9500+ levels is likely but one needs to keep a close eye on any 'false break/bull trap' forming here. Move below 9260 levels could signify end of this short term trend. Trade accordingly.
Yesterday we had mentioned that short term trend continues to be on UP for now (inspite of 100 points slippage from 9380 to 9280 levels) and its likely we see some more gain from these levels. Today Nifty was trading nervously around 9300 ( which has proven to be a stubborn level in short term) but finally managed to pulled it off. Now couple of very important things to note.
Levels around 9300-9350 have become a very obvious resistance hence its not surprising that market has moved above it however in such cases its not very unusual or uncommon to witness a 'false breakout', that is market moves above resistance to creates an impression that its broken and then again moves down. So this is something we should keep in mind going forward and should look out for cues (incase this turns out to be a false break or bull trap).
Secondly on weekly and daily charts market is continuously forming shooting star/inverted hammer/Gravestone doji kind of patterns. These patterns has the power to start a new short term trend on either side. Friday and Monday Nifty had formed 'gravestone doji' and today we again have 'shooting star/hanging man'.
Appearance of shooting star after a long consolidation and at top area ( above key resistance level) can again be bearish (but only if lows of previous days are breached). In case Nifty break below 9260-75 levels again then that would be the time to get cautious once again. Till then higher levels around 9500-9700 are still very much possible from here.
In Summary, market is approaching critical levels and a further push towards 9500+ levels is likely but one needs to keep a close eye on any 'false break/bull trap' forming here. Move below 9260 levels could signify end of this short term trend. Trade accordingly.
Happy Trading
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