Medium Term Trend: ↓Down (Changes to up above 9800)
9000 holds: Friday, Nifty opened strong but soon dropped below 9k levels once rate cut news was out. It managed to recoup some of the losses to close at 9040 levels down 70 points.
Nifty is exhibiting nervousness around 9100 levels which is understandable, it also dropped more than 150 points from the days high which also added to the nervousness. Having said this I think its too early to conclude that markets are done with the current move. There is probably plenty of steam yet left in the markets and it can still move up from here. This nervousness and weakness could only strengthen the markets from here. Remember most of the world markets were having bad day on Friday and HangSeng was down more than 1000 points, yet Nifty recovered and was down only 60-70 points which could be a sign that strength is rebuilding in the markets.
On daily chars, Nifty made a doji pattern which signifies indecisiveness and on weekly charts it formed an 'hammer' pattern which can be a bullish sign ( once Nifty start trading above 9160 levels).
In previous post we had mentioned the probability of Nifty moving towards 9500 levels. We still feel that is possible but need Nifty to sustain above 9150 levels however if markets fails to move above 9150 and drops below 8970 levels ( Fridays low) then probably things will start changing again.
9000 holds: Friday, Nifty opened strong but soon dropped below 9k levels once rate cut news was out. It managed to recoup some of the losses to close at 9040 levels down 70 points.
Nifty is exhibiting nervousness around 9100 levels which is understandable, it also dropped more than 150 points from the days high which also added to the nervousness. Having said this I think its too early to conclude that markets are done with the current move. There is probably plenty of steam yet left in the markets and it can still move up from here. This nervousness and weakness could only strengthen the markets from here. Remember most of the world markets were having bad day on Friday and HangSeng was down more than 1000 points, yet Nifty recovered and was down only 60-70 points which could be a sign that strength is rebuilding in the markets.
On daily chars, Nifty made a doji pattern which signifies indecisiveness and on weekly charts it formed an 'hammer' pattern which can be a bullish sign ( once Nifty start trading above 9160 levels).
In previous post we had mentioned the probability of Nifty moving towards 9500 levels. We still feel that is possible but need Nifty to sustain above 9150 levels however if markets fails to move above 9150 and drops below 8970 levels ( Fridays low) then probably things will start changing again.
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