Medium Term Trend: ☝UP (Changes to Down below 11450)
Weakness Continues: After opening around 11900 levels, Nifty met with yet another round of selling which pushed it all the way to below 11700 levels. It recovered slightly towards end and closed at 11730 levels down 150 points.
In the previous post we had mentioned that inspite of the recent fall market is looking positive and if it moves above 11965 then we are likely to move much higher form current levels. Next day markets did move above 11965 levels and sustained it for some time (which generated hope of an upmove) but markets crashed towards day end to 11800 levels which dashed all hopes of a bullish move.
Similar pattern was witnessed on Monday and today as well, where markets opened positive and then crashed 200 points towards end of day. This similarity in pattern is pointing us towards a possible triangle formation (wedge) which has bullish implications after its completion. However its just a possibility and will be clear in next few trading sessions only. Pattern will be confirmed once B-D line is broken on the upside and E leg which is in progress shouldn't become bigger than C leg ( meaning should hold above 11625-30 levels)
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| Nifty Hourly Chart |
In last 8-10 days Nifty has seen many selloffs from 11900-12K levels which is raising doubts if market is creating some sort of 'Top' around these levels. However we don't think if thats the case, movement we are seeing is indicative of corrective move only and unless we see fall below 11500 levels we don't see much scope for a bigger fall. Market is just consolidating/correcting and post its completion its likely to move in a strong trend.
Nifty had risen all the way to 12K from sub 11K levels (almost 1200 points) in 10-11 days, so now some consolidation is totally justified & these 100-200 points fall we are seeing should not be taken seriously (as long as they are in a range and we don't see much price wise correction).
Happy Trading
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