Trend:☝(UP) - Reversal below 17100
Nifty @ 17175 down 300 points- Bears on top.
We had discussed in previous post that "we could witness some hesitancy around 18100 levels and markets could drop towards 17650 levels and below that final support level exists at 17100 levels"
We had also expected markets to continue exhibiting strength but we were proved wrong and markets broke below 17650 levels last week and today it opened with a big gapdown to test 17100 levels. This was not a preferred scenario but since 17100 was protected today and is holding, for now, we will keep medium term trend to UP only.
Markets have been falling/ creating a lower low continuously since last 8 days. Historically we have seen markets usually falling for 9-10 continuous days before giving some sort of bounce back. Markets are getting oversold as well hence its likely that fall is arrested in next 1-2 days and we see some sort of bounce. What happens after the bounce will be critical. If bounce fizzle out soon and markets drop below 17100 levels again then chances are we could see this fall getting extended towards much lower levels. On the other hand, holding 17100 and moving back above 17550-600 levels could push Nifty back towards 18k levels.
Happy Trading!
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