Medium Term Trend: ☝UP (Changes to Down below 13950)
Nifty @ 14433 down 161 points: Weakness creeping in??
In the previous post we had mentioned: "For short term perspective, todays low around 14475-500 becomes important and if market sustains below these level tomorrow then we can see some weakness"
Yesterday Nifty took support at this level moved back towards 14600 towards end of day. It attempted to repeat the same again today but it didn't hold and market slipped further 14350 levels. Thing about support levels is they should be trusted only once or twice. If market continues to test some important support/resistance level then more often then not they get broken. Market shouldn't be testing support levels again and again.
There were signs of nifty exhibiting some weakness yesterday itself and now that 14475 is conclusively broken its recommended to book profit on long position and sit out for some time. Next support level is around14250-14275 and its very critical. If Nifty doesn't break this level in next 2-3 trading session manages to protect it then probably it can resume its uptrend once again towards 15K levels. However if 14250 gets broken too then we could head towards 14K levels which is the last support for this intermediary bull move and a further slip below 14K levels could indicate the beginning of a larger degree correction starting.
In Summary, break below 14475 could mean a temp halt in the ongoing rally and if 14250 is protected then we can expect the rally to resume again shortly. However break of 14250 could put more question on this bullish move/rally. Overall trend continues to remain up as long as 14K is not broken.
Happy Trading
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