Hi All,
As we expected in the earlier post, Tug of War, Nifty after crossing 11860-70, almost touched the target near 12k (high of 12980), and fell sharply thereafter.
On the lower side, the crucial support of 11600-630 was kind of broken in a jiffy. And which increases the concerns for bulls as this means a break of a Head And Shoulder pattern targeting ~ 11100 mark for Nifty.
However I personally feel, for the short positions created below the supports of 11600 (or even higher), one should safely book partial profits near 11500 and trail stop loss at cost as the gap up opening of 11400-11600 range would be very strong support, and if Bulls want to come back in to the game they have to do something right now, else 11100 looks inevitable below 11400. Also, today's low near 11477, is near the 61.8% retracement of the entire rally from 11100-12100.
Nifty is also trading near a probable trend line (as shown in charts) and confluence of all these bullish indications may give us short term bounce. But the quantum and manner of the bounce would decide whether it is trend setter or just a small relief rally after such a huge fall.
Couple of days price action would be very important and would decide the further plan of action, as of now, book partial profits in shorts and trail stop above cost.
Cheers
Hrishi...
As we expected in the earlier post, Tug of War, Nifty after crossing 11860-70, almost touched the target near 12k (high of 12980), and fell sharply thereafter.
On the lower side, the crucial support of 11600-630 was kind of broken in a jiffy. And which increases the concerns for bulls as this means a break of a Head And Shoulder pattern targeting ~ 11100 mark for Nifty.
However I personally feel, for the short positions created below the supports of 11600 (or even higher), one should safely book partial profits near 11500 and trail stop loss at cost as the gap up opening of 11400-11600 range would be very strong support, and if Bulls want to come back in to the game they have to do something right now, else 11100 looks inevitable below 11400. Also, today's low near 11477, is near the 61.8% retracement of the entire rally from 11100-12100.
Nifty is also trading near a probable trend line (as shown in charts) and confluence of all these bullish indications may give us short term bounce. But the quantum and manner of the bounce would decide whether it is trend setter or just a small relief rally after such a huge fall.
Couple of days price action would be very important and would decide the further plan of action, as of now, book partial profits in shorts and trail stop above cost.
Cheers
Hrishi...
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