Bottom
Line:
Nifty can continue to move sideways between the range of 4810 – 4950 before
giving any direction!
Nifty Daily chart:
Nifty 60 mins chart:
Wave Analysis:
Nifty managed to hold 4830 level
during first hour of trading but failed to sustain there and made an intraday
low near 4806. Failure of prices to rally sharply from the wedge breakout
suggests inherent weakness. Also the weakness across global markets and sharp
depreciation in Rupee against US Dollar continues to be a concern for near term
positivity.
Indian markets are now in very
fragile state as bullish patterns are failing and positive divergences are not
producing expected outcomes. This usually happens when there is very less participants
in the market who are interested in buying and please understand markets can
fall even on low volumes.
From wave perspective, there is
couple of probable scenarios now possible. We can move in sideways consolidation
between 4950 – 4800 over next few days or move up in corrective fashion.
From trading perspective it is going
to be a challenging environment and buying on supports and selling on
resistance can be favorable strategy as of now. Also the near term trend
remains down as prices failed to form any higher highs & higher lows
formation.
In short, a break below 4800 can take
prices towards 4600 – 4650 levels and positivity towards 5100 will open only
above 4950 levels.
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