Hi All,
As posted yesterday, after such a huge sell off for past few days, markets were due for a pull back and the same happened today when Nifty found support in the range of 10950-11050 by creating a low, just below the 11k mark (10999.4).
Though indices started the day on a weak note, after really a long time, Bulls made their presence felt today. it bounced back by more than 100 bps (1%) to close in a comfortable positive territory. In the process of pullback, on hourly charts, Nifty created a Hammer like bullish pattern near the lows and gained almost 100 points after triggering the pattern above 11052-60.
However, the battle is not won, as thanks to a continuous fall so far, there are many hurdles to be crossed. Also, to begin with, lack of convincing evidences on daily charts yet, this upmove can only be termed as a relief rally for bulls and should be looked at as a sell on rise opportunity
On hourly charts, resistances would be 11180-11240-11270-11320-11370-11420.
Importantly, today's low near the support zone (11050-10950) would act as very crucial for bulls and if they manage to hold on, we can at least expect a small relief rally, but if the same is violated, then more pain for sure....
Plan of action - For all those who are already long near the 11k mark, it's advisable to book partial profits and have strict trailing stop losses, a short is only advisable below the support zone or more preferably on the higher side after a bearish evidence on intraday charts...
Cheers
Hrishi
As posted yesterday, after such a huge sell off for past few days, markets were due for a pull back and the same happened today when Nifty found support in the range of 10950-11050 by creating a low, just below the 11k mark (10999.4).
Though indices started the day on a weak note, after really a long time, Bulls made their presence felt today. it bounced back by more than 100 bps (1%) to close in a comfortable positive territory. In the process of pullback, on hourly charts, Nifty created a Hammer like bullish pattern near the lows and gained almost 100 points after triggering the pattern above 11052-60.
However, the battle is not won, as thanks to a continuous fall so far, there are many hurdles to be crossed. Also, to begin with, lack of convincing evidences on daily charts yet, this upmove can only be termed as a relief rally for bulls and should be looked at as a sell on rise opportunity
On hourly charts, resistances would be 11180-11240-11270-11320-11370-11420.
Importantly, today's low near the support zone (11050-10950) would act as very crucial for bulls and if they manage to hold on, we can at least expect a small relief rally, but if the same is violated, then more pain for sure....
Plan of action - For all those who are already long near the 11k mark, it's advisable to book partial profits and have strict trailing stop losses, a short is only advisable below the support zone or more preferably on the higher side after a bearish evidence on intraday charts...
Cheers
Hrishi
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