Medium Term Trend: ☝UP(Changes to Down above 14600)
Nifty @ 15315 : Soaring Higher
In the previous update (when Nifty was at 15100 levels) we had discussed that in case Nifty falls below 14900-15K levels then we can expect some sort of correction else market is likely to remain positive. We did see some correction from 15250 levels but Nifty didn't break below 15K and started moving up again from there. Yesterdays gapup move towards 15300 was indicating a further move towards 15450 which it has almost achieved today.
Today we saw yet another gap-up opening but it failed to sustain and Nifty even turned red touching 15250 levels (almost a 200 point fall from day high). The way Nifty was falling indicated yet another possibility of market forming an 'bull trap' today. 'Bull trap' as we have discussed previously is a bearish pattern and is capable of delivering a sharp correction in a short time. We had seen bull trap formation few days before the budget & we also saw a crash of 1000 points in few days after that. Todays fall however fell slightly short of it. Nifty held on the previous day low and even though todays gap-up was filled intraday, the more important gap up zone of previous day still hold. So its close but not exactly a bull trap.
Going forward, we some resistance around 15450 levels and support at 15200-225 levels ( todays high/low basically). If 15450 is successfully crossed then it can push Nifty towards 15700-800 levels & on the downside if 15200 breaks then market can go on to test 15000 level once again.
Overall market remains in a very bullish trend and as a trader one must avoid the temptation to go short at higher levels. Correction is part and parcel of the game and one day we will definitely see a sizeable correction but we shouldn't anticipate it, for, you cannot and will not be able to time it. Selling at high is a myth & one should not even attempt to do it. Stay with the trend keep buying as and when market present the opportunity but stay away from shorting.
Happy Trading
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