Medium Term Trend: ↑UP (Changes to down below 9500)
Tumbles from 10300: Nifty opened strong above 10300 levels but couldn't sustain above it and started sliding down. It gave up most of the gains ( around 150 points) in second half to close at 10167 levels, up 25 points.
In previous post we had mentioned that "Monday if Nifty sustain above 10170 levels then it can further move towards 10300 levels".
We did reach towards 10300 levels (infact opened there) but failed to secure any more gains beyond that and moved back towards 10150 levels.
Now the broad directions of the market remains on the upside but Nifty is making some interesting pattern in last few days which is suggesting that probably ( I say probably) some bit of correction/sideways movement is still pending hence we might not see this rally extending immediately, we may take a pause and only after that we see a fresh move on the upside.
Now lets discuss what we mean by 'interesting pattern'. Since last 4 days Nifty is opening higher but then moving down, call it profit booking or shorting it doesnt matter. What matters is that its not able to put up any gains after opening and always closing below the opening price. Now this is not a very good sign and could signal that markets are possibly still in a corrective phase ( for a short term perspective). On top of it our own momentum indicator is not able to make a new high (inspite of Nifty touching a new high and moving beyond 10300).
Going forward we need to see if Nifty manages to move 10330 levels, as further gains for now are likely above 10330 only. On the downside 10130 & below that 10050 will act as a support. If these levels breaks then we could fall and retest 9900 levels.
As far as trading is concerned, we had entered long position around 10130 levels on Friday which we exited around 10300 levels today ( we could see the momentum losing hence didnt find it appropriate to hold on to longs). If someone is still long in market then he should exit if market trades for more than 30-45 mins below todays low (10140) and then wait for a fresh opportunity to enter longs.
We did reach towards 10300 levels (infact opened there) but failed to secure any more gains beyond that and moved back towards 10150 levels.
Now the broad directions of the market remains on the upside but Nifty is making some interesting pattern in last few days which is suggesting that probably ( I say probably) some bit of correction/sideways movement is still pending hence we might not see this rally extending immediately, we may take a pause and only after that we see a fresh move on the upside.
Now lets discuss what we mean by 'interesting pattern'. Since last 4 days Nifty is opening higher but then moving down, call it profit booking or shorting it doesnt matter. What matters is that its not able to put up any gains after opening and always closing below the opening price. Now this is not a very good sign and could signal that markets are possibly still in a corrective phase ( for a short term perspective). On top of it our own momentum indicator is not able to make a new high (inspite of Nifty touching a new high and moving beyond 10300).
Going forward we need to see if Nifty manages to move 10330 levels, as further gains for now are likely above 10330 only. On the downside 10130 & below that 10050 will act as a support. If these levels breaks then we could fall and retest 9900 levels.
As far as trading is concerned, we had entered long position around 10130 levels on Friday which we exited around 10300 levels today ( we could see the momentum losing hence didnt find it appropriate to hold on to longs). If someone is still long in market then he should exit if market trades for more than 30-45 mins below todays low (10140) and then wait for a fresh opportunity to enter longs.
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