#MarketUpdate - Knock knock Bulls . . . . !

Hi All,

After two intensifying selling days, yesterday, finally bulls showed some power thanks to the positives mentioned (Gap up support, retracement, trend line, etc)in the earlier post. Though the market traded in red for most if the day, and even broke Monday's low, Bulls fought and Nifty bounced back strongly to close almost flat.

In the entire bargain, Nifty managed to give a bullish candle almost similar to the Hammer, however the upper shadow of the candle is bigger than what is required for a proper Hammer, still looks like a fairly positive candle.

Which means that if Nifty surpasses and sustains above yesterday's high of 11582, Bulls can take Nifty upwards towards the gap down resistance near 11770-800 and post that till 11950-12000

Plan of Action - 

Go long only above 11600 with stop loss below supports of 11450-11400 and targets of 11770-11800-11950-12000

However, if Nifty breaks the low and crucial levels of 11400, then 11100-11000 would be the downward targets..
Cheers

#MarketUpdate - Bang On... Go...Go.... Gone ! ! !

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...