Medium Term Trend: 👇Down (Changes to up above 15200)
Nifty @ 15030 Down 143 points : Range bound trade continues
Nifty continues with it range-bound trade. Wednesday markets were up 140+ points, today it gave up exactly the same number of points. Mkts had closed above 15150 levels in the previous trading session which raised the possibility of markets breaking out from the range and start a new leg on the upside however today again it has fallen in the range. Infact market lost more than 350+ points from day high which suggests markets are in no hurry to give a breakout yet and probably wants to spend some more time in the range consolidating.
However, like we mentioned in the previous post as well, once this consolidation gets over we are likely to see a strong move on the upside. We did have one close above 15150 (but even then the open price was the high point of the day) and Nifty once again failed to give a consecutive close above this level hence for now we are keeping the trend as down only (actually its more like 'sideways' and not 'down' as the trend appears to be Neutral).
Now market has already spent around 18 days in this consolidation mode and historically speaking its normal to see such consolidation last for as long as 30-40 trading sessions even ( that would mean entire March).Market started this month with high volatility and options (both calls and puts) were quoting at very high premium. Now since the beginning of month both calls and puts are losing premium consistently so traders who have bought options ( doesn't matter if they are bull or bear) are bleeding money consistently. For now it seems the only objective of the market is to suck option premium and leave traders high and dry.
Moving ahead, we see good support in 14800-14900 zone and resistance ofcourse is at 15200 levels. As a trader one should be patient and not try to trade market on both side ( buying in the morning and then shoring in the evening). Instead have patience wait for breakout and then enter. Once the consolidation gets over there will be plenty of good trading opportunities & lot of points to gain
Happy Trading
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