Medium Term Trend: ↑UP (Changes to down below 9500)
Takes a beating:Nifty opened flat and made another attempt to cross above 10300 but failed. It collapsed in second half to close at 10045 levels, with a loss of >100 points.
So from 100 points+ to 100 points down, that's how Nifty traded today. However we have been warning our readers since last 2 days about this possible fall. Yesterday we had mentioned in our post "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".
There were chances of market falling and same has materialized today. We had also mentioned that markets are not able to trade/close above its opening prices and that our own momentum indicator is showing loss of momentum which is not a very positive sign. We had squared off our longs around 10300 yesterdays and suggested that existing long positions should be exited below 10140 levels (below yesterdays low). Today markets have fallen further 100 points after breaking below 10140.
Now going forward, the short term charts for Nifty is damaged, there is no doubt it it. Today was the 5th day in a row where Nifty failed to close above its opening price and that is not a very good sign. For bulls to make a strong comeback, its important that Nifty start closing above its opening prices ( we need atleast 2-3 such closes). So even though the overall trend of the Nifty remains up, the short term trend has become a bit jittery and can cause some more weakness in the markets.
Now levels around 9990 and 9910 becomes very important. Incase market continue to fall then levels around 10K and 9900 will become critical from short term pespective. Holding these levels can bring another upmove in the markets. On the upside if we start trading positive then we need to cross 10300 levels with strong momentum and force then only we will be able to see further gains. hence we need to observe markets and trade accordingly.
Takes a beating:Nifty opened flat and made another attempt to cross above 10300 but failed. It collapsed in second half to close at 10045 levels, with a loss of >100 points.
So from 100 points+ to 100 points down, that's how Nifty traded today. However we have been warning our readers since last 2 days about this possible fall. Yesterday we had mentioned in our post "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".
There were chances of market falling and same has materialized today. We had also mentioned that markets are not able to trade/close above its opening prices and that our own momentum indicator is showing loss of momentum which is not a very positive sign. We had squared off our longs around 10300 yesterdays and suggested that existing long positions should be exited below 10140 levels (below yesterdays low). Today markets have fallen further 100 points after breaking below 10140.
Now going forward, the short term charts for Nifty is damaged, there is no doubt it it. Today was the 5th day in a row where Nifty failed to close above its opening price and that is not a very good sign. For bulls to make a strong comeback, its important that Nifty start closing above its opening prices ( we need atleast 2-3 such closes). So even though the overall trend of the Nifty remains up, the short term trend has become a bit jittery and can cause some more weakness in the markets.
Now levels around 9990 and 9910 becomes very important. Incase market continue to fall then levels around 10K and 9900 will become critical from short term pespective. Holding these levels can bring another upmove in the markets. On the upside if we start trading positive then we need to cross 10300 levels with strong momentum and force then only we will be able to see further gains. hence we need to observe markets and trade accordingly.
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