Nifty wave3 target approx 11265 achieved today. Day low 11270.
From here, we can expect minor pull back rally in the form of wave 4 bounce possible today.
Avoid fresh short selling.
Bulls can step in at current levels and push market upward.
Short sellers can cover short sell positions as any time we may witness sharp short covering rally.
Keep stoploss 11200 for long positions. Upward target can be 11370-11400.
Initiate long positions with strict stoploss.
Yesterday Bulls lost their crucial support zone 11740-11725 zone.
In middle session Bulls tried hard to protect this zone by bouncing from lower levels to day higher level 11780 approx, but failed to sustain at higher levels due to Huge selling pressure.
As I mentioned in last update, Bears are in stronger position over Bulls.
High Beta stocks also failed to rally from support levels and lasting crucial supports one by one.
11740-11780 zone remains to be supply zone. Every Bounce attracts Selling pressure.
Hence, Market in Sell on rally mode.
Technical indicators showing that strong bearish trend in force, as RSI keep on trading below 40 level. MACD trading continuously below zero line.
11614-11550 zone is next downward targets for Bears.
Do not try to catch a falling knife. Avoid building fresh long positions.
Bears successfully broke down Bulls last hope of 11900-11880 zone and close well below that zone. Now Bears have clear upper hand over Bulls.Next watchable downside level is at 11745-11725 zone. High Beta stocks started breaking key supports. Hence, some more days we may see this fall in market. Avoid building fresh long positions. Regards, Suryadev Bandari Research Analyst www.earningwave.com
As mentioned in last update, Bears successfully won the battle and closed nifty below important support zone on Thursday. Thursday itself I mentioned that wait and watch tug of war and follow the winner. Bears won that battle, and today we all seeing its effect by opening huge gap down and trading at lower level since opening.
Bears driving market, Bulls last hope is at 11908-11891 support zone. As per Elliottwave Perspective, that support zone is vulnerable to breakdown. Hence, Every bounce witnesses selling pressure from hereon. High beta stocks lossing ground. Eventually they can lead nifty downward.
Avoid building new long positions.
Resistance Placed at 12135-12150 zone.
Support to watch 11908-11891.
Tug of war between Bulls and Bears for the region 12135-12100. Whoever wins the battle, leads the market.Below 12100, Bears strikes again. Trade above 12135-12150, Bulls leads. Wait and watch. Follow the winner. Regards, Suryadev Bandari Research Analyst www.earningwave.com
Bounce from yesterday's low to today's high 12118 is part of counter trend move.
Its visible that Bears still driving the market. Every bounce witnessing selling pressure.
Its little alternate wave number as today's bounce as wave iv minor bounce or Wave 2 of higher degree, but its surely counter trend move and Impulsive down move to resume from current levels.
Resistance placed above 12150 spot level.
Yesterday's low 11908 likely to get retest in coming sessions.
SELL on Rise Market.
In Bear phase, sharp pullbacks like today's bounce quite natural but they fail to sustain at higher levels. Close above 12150 spot, would open other alternatives views.
As long as nifty trades below 12150 spot, trend remains downwards.
Nifty achieved all my previous targets as mentioned in last update even exceeded.
Now, Market in the hands Bears. As nifty broken important psychological Bulls support 12000 and trading continuously below that support,( cmp 11943), next downward targets would be 11900-11880 zone.
Avoid building fresh long positions at this juncture as we can see more selloff in market.
Technical indiacators such as MACD-Below Zero line and RSI below 50 line indicating further weakness to be continue some more time.
Elliottwave pattern also suggesting that more pain ahead.
Bounce from 11614 to today's high 12244 appears like corrective wave pattern and in finishing stage.
It appears that Triangle or Double correction pattern.
Resistance placed at 12270 spot. On breaking down 12195 spot we will get confirmation of down trend resume towards 12100-12065 initially.
Hence, keep booking in long positions. Fresh short sell positions can initiate with strict stoploss above 12280 spot levels.
Technical indicators signalling for sharp correction ahead.
Trade with strict stoploss.
Trading range can be huge today.
Nifty bounced from 11614 to 12171 appears to be counter trend move.
Second leg of selloff can begin any time from current levels, which can brakedown supports taken before.
On higher side, nifty likely to face resistance between 12170*12220 zone.
On lower side, Bears takes charge below 12056 levels.
Avoid building fresh long positions at this jucture.
wherever possible, book profits in Long positions.
This sharp pull back rally can fade out soon.
No major cues for Bulls in the short term.
Bears likely to take charge once nifty drift below 12056 spot level.
Distribution pattern on going on higher side.
Keep strict stoploss to long positions.