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Be alert at Higher levels, trend not favoring Bulls. Bears can strike again.

 As expected in last update, nifty corrected sharply from 11960 to 11660 levels.

From there, it bounced back as counter trend move. Inner wave counts suggesting that, this bounce is only counter trend bounce as minor waves are overlapping on each other. 

By considering other classical technical indicators, markets can face heavy selling pressure at current levels once nifty break below 11820 spot level.

Yesterday it closed below 11900 level, giving hint of Bulls exhaustion.

Avoid taking fresh long positions.

Traders can initiate fresh short sell position below 11820-11800 zone.

This Bearish view can negate if nifty surpass 12025 spot level.

As long as nifty do not break out upside, this view holds right.

Markets breadth also not favoring bullish view.

Resistance 12025

Support 11870-11820.

Regards,

Suryadev Bandari

Research Analyst

www.earningwave.com



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Nifty bounced back strongly on back of Major news announcement of Cut in Corporate Tax on Friday. Today nifty retraced 61.8% of entire fall. As of Now, wave 2 in finishing stages.  More possibility for Wave 3 down to begin any time soon. Hence, Be cautious. Its time to reduce long positions. Profit booking time. From current levels, nifty likely to retest 11000 levels anytime. Short term top made. New highs may not be possible from here. Keep booking profits in long positions. Wave 3 Impulsive Down move can begin any time. Regards, Suryadev Bandari Research Analyst www.earningwave.com

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