Market update - A Gravestone ? ? ? . . . .

After a stupendous rise in Nifty from 7900 to 9500, Nifty has started to show a sign of concern yet again.

However as advised earlier, this time too a bearish view can be taken if and only if Nifty breaks 9390-9350-9250.

On Weekly charts, Nifty has created a Gravestone Doji like pattern which is bearish if Nifty breaks the low of 9390 levels....

Nifty had also created a similar bearish pattern, Shooting star on the week ended 7th April, which saw a mild correction of around 1-1.5%, however Nifty took support near 9000 mark.

Bias

Short term - Up - Support (reversal) 9390-50
Next month - Up - Support (Reversal) 9270-50

Cheers

Hrishi

लाओ बझार.....निफ्टी साडे नौ हजार ....!!!

Hi all,

Thanks to the Hidden Bullish divergence on Nifty daily charts, Nifty achieved the higher targets of 9400-9500 as expected in the earlier post (Hidden Treasure or Hide and Seek !!!)

After sustaining above 9300, Nifty continued creating higher tops higher bottom formation, which is healthy sign for bulls. Thanks to lower CPI data, better than regular forecast for monsoon, GST roll out, etc it has closed above 9500 mark which is very encouraging too.

It is advisable to book part profits in the long positions created near 9300 levels and trail stop loss in profit below 9350 levels...

On daily charts, Nifty is trading with a RSI of 71+ levels which suggests that the markets are overbought, however, there are no bearish signals on charts right now.

Also, though Nifty witnesses a correction it is merely going to be short to medium term in nature as higher time frame charts are also showing same hidden divergences (refer earlier post) which confirms long term bullish outlook... The recent bottom near 6800 should act as a stop loss for long term bullish trend.

Traders are advised to trade based on a set plan of action.....and with proper money management

Short term supports / reversals / stop loss - 9250
Mid term supports / reversals / stop loss - 9000

Will keep you all posted occasionally with my views and personal predictions.....

Cheers