Medium Term Trend: ↑UP (Changes to down below 9000)
Upward March continues: Niftys relentless rise continued and today it hit a high of around 10170 levels and closed at 10060 levels up 80 points.
Nifty opened around 10170 but faced some profit booking at higher levels which dragged it down slightly. Overall Nifty has been rising since last 8-10 days and from the lows of 8800,it has touched 10200 levels which translates to a rally of almost 1400 points in 10 days is ( 140 points each day). This is massive and huge and most importantly taken traders by surprise.
Now since markets have run up so sharply some slowing down or sideways movement is possible at these levels. Momentum indicators are slowing down which are also suggesting a possible pause. Mind you this doesn't mean one should go and short (that ship has sailed long back). Trying to short this market thinking that its top area can be extremely dangerous and must be avoided. Traders should look only to buy in this market.
Now looking into the charts we can definitely see some sort of tiredness creeping in so there is no harm in booking full/partial profits at this stage. looking at levels, if Nifty trades below 10050 tomorrow then it can fall to 9970-80 levels and if 9970 levels breaks, then we can see some more weakness/profit booking. Having said this the levels around 9700-9750 ( bullish island reversal area) supposed to provide a very strong support and its highly unlikely that markets will break these levels now ( less than 20% chance).
As far as trading is concerned, profit booking is advised at these level and if 9975 breaks tomorrow and sustains for 10-15 mins then one should book 100% profit and sit out for some time. We also booked 100% profit today and would prefer to sit out and observe markets for few days before taking next trading call.
Now looking into the charts we can definitely see some sort of tiredness creeping in so there is no harm in booking full/partial profits at this stage. looking at levels, if Nifty trades below 10050 tomorrow then it can fall to 9970-80 levels and if 9970 levels breaks, then we can see some more weakness/profit booking. Having said this the levels around 9700-9750 ( bullish island reversal area) supposed to provide a very strong support and its highly unlikely that markets will break these levels now ( less than 20% chance).
As far as trading is concerned, profit booking is advised at these level and if 9975 breaks tomorrow and sustains for 10-15 mins then one should book 100% profit and sit out for some time. We also booked 100% profit today and would prefer to sit out and observe markets for few days before taking next trading call.
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