Following global cues markets started on a positive note,further going markets faces strong tussle between the bulls and the bears,which lasted till closing of the session.Consequently nifty closed at 5189 in red with ,mild loss of 13 points.The overall session was quite sedated with overall negative market breadth with 587 advances to 876 declines.In view of the expiry markets were expected to be more volatile ,but since both bulls and bears gave a fierce tussle,markets stuck in a narrow range.
Markets closing below 5200 is an indication that bears are geared up to make their move.In today's session markets successfully bounce from the previously respected and psychologically developed 5170 levels.In their range bound move from 5150 to 5340 ,markets traded in small triangular pattern,which has resulted into a failure .In consequence markets have initiated a move in the opposite i.e. downside direction.The objective leads the markets to 5000 levels which on its course violates the dynamic 200 DMA.
It would not be a surprise if markets approach sub 5000 levels in coming series.Considering the both facets i.e. technically and fundamentally,markets seemed to be more biased towards bears.Currently wide range of technical indicators are favoring bears.With not much change,but todays move has again added some weight to existing bearish sentiment.
In contrarian perspective ,if markets hold up the 200 DMA levels ,it would not in any way direct the markets to upside it might be such that bears are waiting foe the remaining bulls to get completely exhausted so they pave their way downward with ease.The bollinger band has also narrowed a quite giving signs of an impending breakout.
I suggest traders to initiate a positional trade only after a valid confirmation and in the direction of the breakout.Patience pays the trader with a lot of rewards,do not let "HURRY SPOIL THE CURRY".
Markets closing below 5200 is an indication that bears are geared up to make their move.In today's session markets successfully bounce from the previously respected and psychologically developed 5170 levels.In their range bound move from 5150 to 5340 ,markets traded in small triangular pattern,which has resulted into a failure .In consequence markets have initiated a move in the opposite i.e. downside direction.The objective leads the markets to 5000 levels which on its course violates the dynamic 200 DMA.
It would not be a surprise if markets approach sub 5000 levels in coming series.Considering the both facets i.e. technically and fundamentally,markets seemed to be more biased towards bears.Currently wide range of technical indicators are favoring bears.With not much change,but todays move has again added some weight to existing bearish sentiment.
In contrarian perspective ,if markets hold up the 200 DMA levels ,it would not in any way direct the markets to upside it might be such that bears are waiting foe the remaining bulls to get completely exhausted so they pave their way downward with ease.The bollinger band has also narrowed a quite giving signs of an impending breakout.
I suggest traders to initiate a positional trade only after a valid confirmation and in the direction of the breakout.Patience pays the trader with a lot of rewards,do not let "HURRY SPOIL THE CURRY".
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