Hi All,
Ha ha ha... jokes apart, but all hell break loose for Nifty Bulls, as the index did not hold the key area of 10950-11050, and upon breaking 10950, it had a free fall till 10880 levels.
Though, there was a strong pull back after Nifty was negative by more than 2%, the same was not very convincing as markets still closed below the opening for yesterday, hence giving a Hammer like Red Candle.
Today, in opening trade, in spite of a sharp pull back yesterday, index could not sustain higher levels, and in fact broke the low for yesterday as well.
As expected, after breaching the important level of 10950, Nifty now marching towards its next target near 10800 mark, which is also a 61.8% retracement of the entire upmove from 10k to 12k....
Though, as shown in the chart, markets are really oversold with RSI near 22 (Happened earlier in Oct 18 and Nov 16), indices trading near the retracement level and a demand zone, by looking at the bear force, it is NOT advisable to go long..
The bias for markets would continue to be bearish untill we get any material bullish evidences and hence the plan of action would be staying short and sell on rise with immediate target of 10800-10850 (Nifty almost kissed this area today). No going long untill there is any bullish evidence as if Nifty fails to hold 10800 the next wider support zone is going to be 10720-10530....
Cheers
Ha ha ha... jokes apart, but all hell break loose for Nifty Bulls, as the index did not hold the key area of 10950-11050, and upon breaking 10950, it had a free fall till 10880 levels.
Though, there was a strong pull back after Nifty was negative by more than 2%, the same was not very convincing as markets still closed below the opening for yesterday, hence giving a Hammer like Red Candle.
Today, in opening trade, in spite of a sharp pull back yesterday, index could not sustain higher levels, and in fact broke the low for yesterday as well.
As expected, after breaching the important level of 10950, Nifty now marching towards its next target near 10800 mark, which is also a 61.8% retracement of the entire upmove from 10k to 12k....
Though, as shown in the chart, markets are really oversold with RSI near 22 (Happened earlier in Oct 18 and Nov 16), indices trading near the retracement level and a demand zone, by looking at the bear force, it is NOT advisable to go long..
The bias for markets would continue to be bearish untill we get any material bullish evidences and hence the plan of action would be staying short and sell on rise with immediate target of 10800-10850 (Nifty almost kissed this area today). No going long untill there is any bullish evidence as if Nifty fails to hold 10800 the next wider support zone is going to be 10720-10530....
Cheers
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