Trend:☝(UP) - Reversal below 16550
Nifty @ 17525: Nifty continues to post new high
In the old post, way back on 21st June (when Nifty was around 15600) we had mentioned that
"......the way we read markets, we see a probability of Markets attempting a pull back from these levels back towards 16000-16100 levels and sustaining above it could push markets all the way towards 17K levels"
Nifty has today moved above 17500 which is exactly in line with our expectations. When Nifty was trading trading around 15600 levels, we had stuck our neck out and had claimed that last 10 months corrections seems to be getting over and Nifty can start moving up now. I think now that its been established beyond any doubt that market indeed is in a up trend and that an important bottom seems to have been made at 15500 levels, we need to analyse with a fresh perspective and look ahead.
We are of the opinion that going forward we can continue to see strength in Nifty. For short term perspective we see some resistance round 17580-600 zone above which Nifty can target 18K levels. On the downside the level around 17100-150 (just below last Thursdays day low) assumes lots of significance. As long as this level holds, the uptrend remains intact. For bears to have any sizeable impact in near term, 17150-100 needs to be broken in next few sessions else bulls can continue to march ahead. Below 17100 the final support lies at 16600 levels and if that also gets broken then probably we are looking at retesting of last months low (however it doesnt look probable as of now).
In Nutshell, market remains positive and inspite of all the negative news flow about high intrest rates/inflation/fear of recession etc markets can continue to move up from here.To dent this current bullish structure, bears needs to break beow 17100 and then 16600 levels which is not going to be an easy task and until that happens traders should stick to long positions only.
Happy Trading!
