Medium Term Trend: ↓Down (Changes to up above 9800)
This trend of Nifty opening strong and then giving up all gains before close is becoming regular now. In last 6 trading session this has happened 4 or 5 times. Fridays move above 9300 had raised a hope of markets testing 9500-9600 levels however after seeing todays movement, its possible that we may see some more sideways trading/consolidation/weakness before we start reclaiming 9500+ levels.
Todays movement is crucial as it has formed 'bearish engulfing' pattern on the daily charts also the close has come below Previous days session low. All these things are now raising questions if the consolidation of last 4 trading session was just a corrective move ( B leg) to the fall from 9850 to 9150 (A leg). If this is right then we are likely to see more dip ( C leg probably).
Level around 9300-9400 have become a thorn in the flesh for bulls and they are not being able to cross it inspite of trying many times. Quick jump towards 9800 on expiry day turned futile as markets opened with a huge gapdown the very next day and formed a bearish island reversal pattern on daily charts. Now even after 5-6 days, the gap still stands which is a worry sign for bulls. However keep in mind we have seen such scenario playing out in past as well and each time Nifty managed to move up eventually. But lot of choppiness and sideways movement (especially timewise) is observed before that happens so one needs to be prepared for that.
In Summary, Niftys inability to take out 9300-9400 levels or to fill the bearish 'island reversal gap' has raised a possibility which suggest that the fall which started with a gapdown from 9850 levels is not yet complete. Today Nifty has formed 'bearish engulfing pattern' which is lending further credibility to this theory. Trading below 9220 levels could Push Nifty towards 9150 and 9000 levels ( however in present scenario we are not expecting Nifty to go down much below 9k levels).
For positive scenario to play out, Nifty must take out 9440 level and then it should go on to fill the gap ( stands at 95000- 9700 levels). Overall pattern still remains down and till the time the gapdown area is not filled, its likely to remain so.
Nifty Buy/Sell Algorithm
This trend of Nifty opening strong and then giving up all gains before close is becoming regular now. In last 6 trading session this has happened 4 or 5 times. Fridays move above 9300 had raised a hope of markets testing 9500-9600 levels however after seeing todays movement, its possible that we may see some more sideways trading/consolidation/weakness before we start reclaiming 9500+ levels.
Todays movement is crucial as it has formed 'bearish engulfing' pattern on the daily charts also the close has come below Previous days session low. All these things are now raising questions if the consolidation of last 4 trading session was just a corrective move ( B leg) to the fall from 9850 to 9150 (A leg). If this is right then we are likely to see more dip ( C leg probably).
Level around 9300-9400 have become a thorn in the flesh for bulls and they are not being able to cross it inspite of trying many times. Quick jump towards 9800 on expiry day turned futile as markets opened with a huge gapdown the very next day and formed a bearish island reversal pattern on daily charts. Now even after 5-6 days, the gap still stands which is a worry sign for bulls. However keep in mind we have seen such scenario playing out in past as well and each time Nifty managed to move up eventually. But lot of choppiness and sideways movement (especially timewise) is observed before that happens so one needs to be prepared for that.
In Summary, Niftys inability to take out 9300-9400 levels or to fill the bearish 'island reversal gap' has raised a possibility which suggest that the fall which started with a gapdown from 9850 levels is not yet complete. Today Nifty has formed 'bearish engulfing pattern' which is lending further credibility to this theory. Trading below 9220 levels could Push Nifty towards 9150 and 9000 levels ( however in present scenario we are not expecting Nifty to go down much below 9k levels).
For positive scenario to play out, Nifty must take out 9440 level and then it should go on to fill the gap ( stands at 95000- 9700 levels). Overall pattern still remains down and till the time the gapdown area is not filled, its likely to remain so.
Happy Trading
To join our algorithm based buy/sell whatsapp service during market hours, pls click below link or whatsapp @ 9319321906
Nifty Buy/Sell Algorithm
No comments:
Post a Comment