Medium Term Trend: ☝UP (Changes to Down below 12000)
Inching towards 13Ks Nifty had yet another stellar session today and moved above 12700 levels to close at 12750 levels with a gain of 100+ points
We had mentioned in our older posts that Nifty can easily move towards 12500 zone now even though the short term targets are achieved markets continue to move up. This could be due to 'panic buying' (buying by traders who feel they have been left out of this bull run). No one can fix target for Nifty and no one can predict for how long this upmove will continue so as a trader one must keep booking partial profits and maintain trailing SLs ( keep moving SL higher till its hit).
We have been following exactly the same strategy and now Nifty is more than 1000+ points up from our buy price in less than a week.
Anyways moving on to Nifty, today we did see some intraday drop towards 12600 levels but towards the end market again jumped back above 12750, now to a naked eye this may look like show of strength by the markets but in reality this could be ( possibility) an early sign of exhaustion or pause. Markets have run up sharply hence its not unwise to expect a correction (but at the same time its foolish to create a short position in anticipation of the fall). If we see a fall below todays low ( around 12550) levels again and markets start sustaining below it then it could be a sign that in immediate term the upmove is ended and mkt might give some sort of correction. But if nifty continues to move up and trade above todays high, then levels around 13K are very much possible.
In summary, if we see a drop below 12600-12550 levels then we can see further drop towards 12400 levels and below that markets can touch 12100 levels (but a fall below 12100 levels is inconceivable for now so there is no point talking about it yet). On the upside , if markets trade above todays high then this rally might continue for few more trading sessions and Nifty could touch 13K levels.
Keep an eye on todays low.
Happy Trading
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