Medium Term Trend: ☝UP (Changes to Down below 11450)
Back at 11800: Nifty opened around 11750 and quickly moved above 11800 levels. It was a relatively calm day and not much volatility was seen and markets finally closed around 11810 with a solid gain of 150+ points
Reliance continue to fall and inspite of that Nifty moved up 150+ so those who think that markets cannot move up without the help of Reliance had something to ponder about.
Yesterday we had mentioned that if Nifty moves above 11725 levels then it can further move to 11800-850 level. Today we got to see exactly that. We had further mentioned that Nifty has one crucial resistance around 11875 levels and if that is crossed too in next 1-2 sessions then probably it could be a sign that corrective move is completed and markets have started a new leg on the upside. Now it remains to be seen if and how markets crosses above this resistance zone in next 1-2 trading sessions. Mind you volatility is likely to remain high till US presidential and Bihar election results are announced (10th Nov). After that we can expect a drastic reduction in volatility and options prices (which are trading at high premium presently) could see a major deterioration in their value. So traders who buy options (Puts/calls) should keep this in mind and be careful.
Many traders are also banking on market making some major move after election results and though technically its possible, the realistic chances of mkt moving in big way after the event is relatively slim. Ofcourse 200-300 point movement is always possible but beyond that is looking difficult as majority/all possible outcomes are already discounted for.
And like we have always been saying, once this consolidation is over we expect markets to move above 12K levels but before that happens, its possible that we see a round or two of increased volatility so if you trade then trade in light qty and keep booking regular profits.
Happy Trading
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