Medium Term Trend: ↓Down (Changes to up above 9800)
Maintaining strength: Nifty opened weak around 9400 levels but managed to move back above 9500 levels and almost hit 9600 levels and closed at 9580 up 90 points.
Nifty continues to move in line with our expectations and like we have been saying there is a good chance that Nifty is headed towards 9800 levels. On the short term charts market continues to remain slightly overbought hence some sort of sideways movement/consolidation is possible before Nifty start moving again.
Today Nifty future discount widened to around 70-80 points. This is huge and indicative of lack of convictions traders have in markets. However we believe the discounting is more because positions are being 'hedged' by smart traders of course some sort of shorting is also going on so that is contributing as well.Anyways not too much should be read into it.
Today Nifty made a new high and that is important. It sustaining right in the middle of 'island reversal' area which is not a good news for bears, ideally they would have liked to see a strong reaction from 9500 levels (in the morning there was a sign of such reaction but then markets recovered quickly)
Now since market is broadly moving in line with our expectations there nothing much to add today, same views as mentioned in previous posts stands even now and we need to see if Nifty can make one more push and move itself above the critical level of 9800. That should settle things decisively in favor of Bulls ( if not already).
Maintaining strength: Nifty opened weak around 9400 levels but managed to move back above 9500 levels and almost hit 9600 levels and closed at 9580 up 90 points.
Nifty continues to move in line with our expectations and like we have been saying there is a good chance that Nifty is headed towards 9800 levels. On the short term charts market continues to remain slightly overbought hence some sort of sideways movement/consolidation is possible before Nifty start moving again.
Today Nifty future discount widened to around 70-80 points. This is huge and indicative of lack of convictions traders have in markets. However we believe the discounting is more because positions are being 'hedged' by smart traders of course some sort of shorting is also going on so that is contributing as well.Anyways not too much should be read into it.
Today Nifty made a new high and that is important. It sustaining right in the middle of 'island reversal' area which is not a good news for bears, ideally they would have liked to see a strong reaction from 9500 levels (in the morning there was a sign of such reaction but then markets recovered quickly)
Now since market is broadly moving in line with our expectations there nothing much to add today, same views as mentioned in previous posts stands even now and we need to see if Nifty can make one more push and move itself above the critical level of 9800. That should settle things decisively in favor of Bulls ( if not already).
Happy Trading
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