Medium Term Trend: ↑UP (down below 11550)
Weakness Resumes: Nifty opened flat around 11900 and dropped to 11850 as the trade progressed, it traded around 11850 for whole day but couldn't hold on to it and dropped to 11800. It finally closed at 11823 down 80 points.
So finally Nifty tested11800 again but it did so at the fag end of the trading session and managed to hold on to it. We had mentioned yesterday ( infact have been mentioning since quite a few days) that market are looking shaky and in consolidation mode and these intermittent pull backs that we are seeing , don't count for much. Even when Nifty was trading around 11950-12K 2-3 days back, we had categorically mentioned that the pull back from 11877 to 12K levels is not looking strong and there is every likelihood of markets retesting the 11800 levels again. Well today markets have done exactly that.
So what to expect going forward? We had also mentioned that if 11800 is tested again there is every likelihood that it will be broken this time. We still hold on to the same view ( as per our analysis 11800 is weakened considerably and probably wont be able to support market this around). The fact that 11800 is tested only in the last hour and markets closed just above it, is lending more support to our theory. Usually when some support or resistance become quite obvious there is a chance that its taken out by a gapup/gapdown opening hence we wont be surprised to see a gapdown opening on Monday ( its just a possibility not a confirmation).
It will be interesting to see how (if at all) 11800 is taken out by the markets as that would give further insight on what market is going to do in coming days. On the other hand if 11800 holds and Nifty again opens strong then it needs to take out 11950-12K levels strongly to resume the uptrend.
Next few days could be extremely crucial in deciding the near term course of action so be watchful, stay cautious and don't be in hurry to go long.
Happy Trading!
Weakness Resumes: Nifty opened flat around 11900 and dropped to 11850 as the trade progressed, it traded around 11850 for whole day but couldn't hold on to it and dropped to 11800. It finally closed at 11823 down 80 points.
So finally Nifty tested11800 again but it did so at the fag end of the trading session and managed to hold on to it. We had mentioned yesterday ( infact have been mentioning since quite a few days) that market are looking shaky and in consolidation mode and these intermittent pull backs that we are seeing , don't count for much. Even when Nifty was trading around 11950-12K 2-3 days back, we had categorically mentioned that the pull back from 11877 to 12K levels is not looking strong and there is every likelihood of markets retesting the 11800 levels again. Well today markets have done exactly that.
So what to expect going forward? We had also mentioned that if 11800 is tested again there is every likelihood that it will be broken this time. We still hold on to the same view ( as per our analysis 11800 is weakened considerably and probably wont be able to support market this around). The fact that 11800 is tested only in the last hour and markets closed just above it, is lending more support to our theory. Usually when some support or resistance become quite obvious there is a chance that its taken out by a gapup/gapdown opening hence we wont be surprised to see a gapdown opening on Monday ( its just a possibility not a confirmation).
It will be interesting to see how (if at all) 11800 is taken out by the markets as that would give further insight on what market is going to do in coming days. On the other hand if 11800 holds and Nifty again opens strong then it needs to take out 11950-12K levels strongly to resume the uptrend.
Next few days could be extremely crucial in deciding the near term course of action so be watchful, stay cautious and don't be in hurry to go long.
Happy Trading!
