Hi All,
As per the observation (on FII and DII net flows) posted late evening yesterday, Nifty started trading day on a positive note by rising more than half a percentage, however gave off almost all gains and even traded negative for a while, but only to recover smartly and rising further by more than 100 points in the second half.
On daily charts, Nifty created a Hammer like pattern which is surely a great positive sign for bulls, moreover this candle appears near prior moving averages supports mentioned yesterday. In order to call this at least a short term trend reversal, nifty should surpass and sustain above 10270-10310 mark, upon which it can expected to rally upwards near 10450-10650 levels.
Everything was positive for Markets today, especially from the second half, except for an important fact... The Market breadth, i.e. the Advance Decline ratio was in favour of bears for almost the entire day, when markets were trading higher. At noon, the ratio was as bad as 1:1.5 in favour of bears, after the late afternoon surge, the AD ratio was still fairly on the bears side. Usually this coupled with some other observations can see negative bias for coming days.
We can expect Nifty to go up, face stiff resistances and then give away entire gains in days to come... However, tomorrow will be very crucial as we will also be getting a weekly close for markets, and a close above 10350 odd levels can then mean a Hammer on a weekly chart, and the same has to be interpreted later.
A near to short term bullish bias can only be if Nifty sustains above the resistances mentioned.
The bias for mid term continues to be bearish thanks to the Bearish Engulfing pattern of first week of February, with reversal above 10750
Cheers....
As per the observation (on FII and DII net flows) posted late evening yesterday, Nifty started trading day on a positive note by rising more than half a percentage, however gave off almost all gains and even traded negative for a while, but only to recover smartly and rising further by more than 100 points in the second half.
On daily charts, Nifty created a Hammer like pattern which is surely a great positive sign for bulls, moreover this candle appears near prior moving averages supports mentioned yesterday. In order to call this at least a short term trend reversal, nifty should surpass and sustain above 10270-10310 mark, upon which it can expected to rally upwards near 10450-10650 levels.
Everything was positive for Markets today, especially from the second half, except for an important fact... The Market breadth, i.e. the Advance Decline ratio was in favour of bears for almost the entire day, when markets were trading higher. At noon, the ratio was as bad as 1:1.5 in favour of bears, after the late afternoon surge, the AD ratio was still fairly on the bears side. Usually this coupled with some other observations can see negative bias for coming days.
We can expect Nifty to go up, face stiff resistances and then give away entire gains in days to come... However, tomorrow will be very crucial as we will also be getting a weekly close for markets, and a close above 10350 odd levels can then mean a Hammer on a weekly chart, and the same has to be interpreted later.
A near to short term bullish bias can only be if Nifty sustains above the resistances mentioned.
The bias for mid term continues to be bearish thanks to the Bearish Engulfing pattern of first week of February, with reversal above 10750
Cheers....
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