Nifty closed in red at 5086 giving a downpour of 101 points on the cards.The nifty gave an expected sedative opening.The markets were feeling great pressure from the domestic as well as the global peer markets.Since markets were waiting for an impending breakout ,Fridays fall was inevitably,participants had made up their mind and were ready for the down-slide.The market breadth stood completely in the favor of the bears with 286 advances and 1201declines.
With the fall markets have violated a dynamic and significant level of 200 DMA,which could prove great substance to lead the markets downward,As said in my earlier posts that markets are likely to touch 5080 levels,as it did,the point here to be watched closely is that whether are we turning strongly bearish ? or we just needed a breakout to make ourselves comfortable situation for trade.The answer lies whether markets closes below the 50% retracement of 5083,then we could bet on the bears for a bigger hand.Violation of these levels may trigger strong bearish sentiments amongst investors and traders which could eventually take nifty to 4954 levels which is 61.8% retracement level.
Markets are expected to trade lower in view of the sentiments, money will rise from short positions.Just be careful with this levels as this violation could also result in a whipsaw.Here i would like to throw some more light ,as the weekly charts seems more dominants in these days ,if we watch closely we observe markets are in no rush to go either down or up past few months,Also nifty is following an upward trend-line which nifty is likely to touch in coming days.Hence,by watching the whole scenario i feel markets may consume considerable time before touching the trend-line .If respected ,then we can again expect an upside an this time market will more likely to be touching previous highs of 5630.
Talking about the indicators ,in response to the fall a downward breakout has been observed on squeezed Bollinger band ,the momentum indicator RSI is approaching oversold region shortly continuing to dampen the sentiments.It would definitely be wise to be confirm of the short term trend for being positional,hence watch for a day or 2 picture will be more clear.For intraday traders u can ride on bear as of now.
With the fall markets have violated a dynamic and significant level of 200 DMA,which could prove great substance to lead the markets downward,As said in my earlier posts that markets are likely to touch 5080 levels,as it did,the point here to be watched closely is that whether are we turning strongly bearish ? or we just needed a breakout to make ourselves comfortable situation for trade.The answer lies whether markets closes below the 50% retracement of 5083,then we could bet on the bears for a bigger hand.Violation of these levels may trigger strong bearish sentiments amongst investors and traders which could eventually take nifty to 4954 levels which is 61.8% retracement level.
Markets are expected to trade lower in view of the sentiments, money will rise from short positions.Just be careful with this levels as this violation could also result in a whipsaw.Here i would like to throw some more light ,as the weekly charts seems more dominants in these days ,if we watch closely we observe markets are in no rush to go either down or up past few months,Also nifty is following an upward trend-line which nifty is likely to touch in coming days.Hence,by watching the whole scenario i feel markets may consume considerable time before touching the trend-line .If respected ,then we can again expect an upside an this time market will more likely to be touching previous highs of 5630.
Talking about the indicators ,in response to the fall a downward breakout has been observed on squeezed Bollinger band ,the momentum indicator RSI is approaching oversold region shortly continuing to dampen the sentiments.It would definitely be wise to be confirm of the short term trend for being positional,hence watch for a day or 2 picture will be more clear.For intraday traders u can ride on bear as of now.
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