Hi All...
Thanks to the global meltdown on account of interest rate spike in US and inflation concerns, global stock markets including Dalal Street saw a massive sell off...
However, after the initial panic in the morning, markets recovered more than half of the loss.
As discussed, after taking support exactly at the 78.6% retracement of 10276, Nifty traded cautiously for first half of the day and then rallied further to recover almost half of the opening losses.
Though it closed negative by 168 points, the daily chart shows a strong bullish candle, which is not the case in Sensex however. Also, drilling down on hourly charts, Nifty ended the intraday rally with a Shooting start like candle, hence 10470-450 levels become vary crucial supports for tomorrow.
Also, on daily charts after gaping down by almost 300 points, Nifty recovered and close the gap before closing the day, hence there is no gap down / bearish window on Daily charts...
Going forward....
Might be too early / risky to take a bullish stance immediately, and I would like to wait and watch for another bullish evidence on charts, however one thing is imminent that bull have to surpass and sustain 10600 for any upside and bears have to break 10270-250 for further downside.
As posted earlier, 10000 remains a key psychological support, below which Nifty can drift down till 9700-9650 levels.
In a nut shell,
Hrishi.....
Thanks to the global meltdown on account of interest rate spike in US and inflation concerns, global stock markets including Dalal Street saw a massive sell off...
However, after the initial panic in the morning, markets recovered more than half of the loss.
As discussed, after taking support exactly at the 78.6% retracement of 10276, Nifty traded cautiously for first half of the day and then rallied further to recover almost half of the opening losses.
Though it closed negative by 168 points, the daily chart shows a strong bullish candle, which is not the case in Sensex however. Also, drilling down on hourly charts, Nifty ended the intraday rally with a Shooting start like candle, hence 10470-450 levels become vary crucial supports for tomorrow.
Also, on daily charts after gaping down by almost 300 points, Nifty recovered and close the gap before closing the day, hence there is no gap down / bearish window on Daily charts...
Going forward....
Might be too early / risky to take a bullish stance immediately, and I would like to wait and watch for another bullish evidence on charts, however one thing is imminent that bull have to surpass and sustain 10600 for any upside and bears have to break 10270-250 for further downside.
As posted earlier, 10000 remains a key psychological support, below which Nifty can drift down till 9700-9650 levels.
In a nut shell,
- Short traders might have already booked profits when the trade was initiated near 10800 levels, and should ideally wait for a favourable risk reward opportunity,
- Long traders should ideally wait and watch for something more concrete to happen...
Cheers
Hrishi.....
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