Nifty dropped below yesterdays low and broke below 5950 but later bounced back above 6000 levels with moderate volumes and -ve breadth.Important points for today.
1.Nifty up by 0.5% with 0.37 breadth.
2.12th day since the highs of 6284.
3.4th weekly down close.
Nifty's 2nd downleg from 6150 completed today.Nifty may have entered a short term up now for 2-3 days,and the upside can stretch upto 6150.Both downlegs have lasted for 3-5 days.I expect the 3rd leg to be also of the same duration ie 3-5/6 days.But for bigger fall to happen and Nifty to breach 5950 level decisively ,momentum will be needed.Since Nifty has breached it today and done hourly close below 5950,I expect that this level has fallen now and its only a matter of time before Nifty tears apart this level.I would look for momentum in the next downleg of Nifty to determine what possible levels could Nifty target.With 4th weekly closing below the highest weekly closing,I see this as a weekly correction.Since the time taken for this correction is already 4 weeks,I expect the correction to not cross the 15-20% zone ie 5000 levels.
Saturday, October 30, 2010
Friday, October 29, 2010
Oct28 Update
Nifty moved sideways but slid sharply in last 30min with high volumes(though expiry day also) and -ve breadth.Important points for today.
1.Nifty down by 0.6% with 0.63 breadth.
2.11th day since the highs of 6284.
Nifty slid very sharply in last 30min closing 55 points below 3.00pm close.If this is the downward momentum,Nifty should continue with it tomorrow and broke and close below 5960 levels.If Nifty again goes into sideways then the possibility of a bounce will also increase in the coming days.This looks like a weekly correction and Nifty has not shown any signs of weekly capitulation,So I expect that Nifty will make some move in the coming days possibly in the downside direction.
1.Nifty down by 0.6% with 0.63 breadth.
2.11th day since the highs of 6284.
Nifty slid very sharply in last 30min closing 55 points below 3.00pm close.If this is the downward momentum,Nifty should continue with it tomorrow and broke and close below 5960 levels.If Nifty again goes into sideways then the possibility of a bounce will also increase in the coming days.This looks like a weekly correction and Nifty has not shown any signs of weekly capitulation,So I expect that Nifty will make some move in the coming days possibly in the downside direction.
Wednesday, October 27, 2010
Oct 27 Update
Nifty dropped lower below 6000 levels with higher volumes and -ve breadth.Important points for today.
1.Nifty down by 1.15% with 0.6 breadth.
2.10th day since the highs of 6284.
Nifty broke below 6000 levels and weakness was persistent since open with high of today being lower than yesterdays low.This is a very bearish signal.50sma @5850-5900 can generate a bounce but I expect Nifty may undergo deeper correction now in next few days by Diwali.
1.Nifty down by 1.15% with 0.6 breadth.
2.10th day since the highs of 6284.
Nifty broke below 6000 levels and weakness was persistent since open with high of today being lower than yesterdays low.This is a very bearish signal.50sma @5850-5900 can generate a bounce but I expect Nifty may undergo deeper correction now in next few days by Diwali.
Tuesday, October 26, 2010
Oct 26 Update
Nifty was sideways today with -ve bias with moderate volumes and -ve breadth. Important points for today.
1.Nifty down by 0.4% with 0.7 breadth.
2.9th day since the highs of 6284.
Nifty move in a narrow range and closed below 6100 today.Sideways move is difficult to infer about the next move though the bias is towards downside.I would look for the next 3 days of action of this week to get a good signal for a breakdown OR a further move up beyond 6300.
1.Nifty down by 0.4% with 0.7 breadth.
2.9th day since the highs of 6284.
Nifty move in a narrow range and closed below 6100 today.Sideways move is difficult to infer about the next move though the bias is towards downside.I would look for the next 3 days of action of this week to get a good signal for a breakdown OR a further move up beyond 6300.
Monday, October 25, 2010
Oct25 Update
Nifty moved up with moderate volumes and +ve breadth with slow momentum.Important points for today.
1.Nifty up by 0.7% with 1.6 breadth.
2.8th day since the highs of 6284.
3.3rd day since the short term low of 5966.
Next 2-3 days will be important as Nifty should attempt to move above 6200-6250 levels ,failing which there could be bigger downside fall.I will remain highly cautious about Niftys move this week.
1.Nifty up by 0.7% with 1.6 breadth.
2.8th day since the highs of 6284.
3.3rd day since the short term low of 5966.
Next 2-3 days will be important as Nifty should attempt to move above 6200-6250 levels ,failing which there could be bigger downside fall.I will remain highly cautious about Niftys move this week.
Sunday, October 24, 2010
Oct22 Update
Nifty drifted down in sideways manner with moderate volumes and neutral breadth. Important points for today.
1.Nifty down by 0.6% with 1.0 breadth.
2.7th day since the highs of 6284.
3.3rd weekly close below the highest weekly closing of 6143.
Nifty after yesterdays bounce drifted down.A short term bottom is in place for nifty in the range of 5960-5990.So if Nifty shows any strength next week, then only that bottom will be confirmed else Nifty's bounce may just be correction to the downside.Also it seems like Nifty is undergoing weekly correction, being down for 3 weeks(this week is almost flat),so capitulation on weekly is yet to be seen.My expectation is that Nifty in next 2 weeks (most probably) should probably make a medium term bottom.
1.Nifty down by 0.6% with 1.0 breadth.
2.7th day since the highs of 6284.
3.3rd weekly close below the highest weekly closing of 6143.
Nifty after yesterdays bounce drifted down.A short term bottom is in place for nifty in the range of 5960-5990.So if Nifty shows any strength next week, then only that bottom will be confirmed else Nifty's bounce may just be correction to the downside.Also it seems like Nifty is undergoing weekly correction, being down for 3 weeks(this week is almost flat),so capitulation on weekly is yet to be seen.My expectation is that Nifty in next 2 weeks (most probably) should probably make a medium term bottom.
Friday, October 22, 2010
Oct21 Update
Nifty bounced above 6100 level today with moderate volumes and +ve breadth.Important points for today.
1.Nifty up by 2.0% with 2.25 breadth.
2.6th day since the highs of 6284.
3.Nifty closed above 5ema/20sma after 4 days.
Nifty's bounce today may either be a one day affair or it may be few days of correction to the downtrend or a new bullish wave.Nifty breadth was 48/2 indicating extreme.This to me indicates that Nifty can reverse all of the gain tomorrow and if that happens the chances of big fall will be high early next week.But if Nifty closes above 6100 levels but below 6143 then Nifty may well be undergoing correction to the downtrend for next few days.But if Nifty continues todays surge with a closing above 6150, then Nifty will likely make new highs in the coming days.Tomorrow being weekly closing, its going to be important.
1.Nifty up by 2.0% with 2.25 breadth.
2.6th day since the highs of 6284.
3.Nifty closed above 5ema/20sma after 4 days.
Nifty's bounce today may either be a one day affair or it may be few days of correction to the downtrend or a new bullish wave.Nifty breadth was 48/2 indicating extreme.This to me indicates that Nifty can reverse all of the gain tomorrow and if that happens the chances of big fall will be high early next week.But if Nifty closes above 6100 levels but below 6143 then Nifty may well be undergoing correction to the downtrend for next few days.But if Nifty continues todays surge with a closing above 6150, then Nifty will likely make new highs in the coming days.Tomorrow being weekly closing, its going to be important.
Wednesday, October 20, 2010
Oct20 Update
Nifty was sideways with -ve bias with lower volumes and -ve breadth.Important points for today.
1.Nifty down by 0.7% with 0.5 breadth.
2.5th day since the highs of 6284.
3.35th day since the previous swing low of 5350.
4.4th consecutive day below 5ema/20sma.
Nifty drifted below 6000 and closed below it.Nifty's fall after the bounce to 6127 is waning in momentum and thus I expect Nifty to turn up in short term with possible upside target of 6150-6200 by middle of next week.I think Nifty is undergoing ZigZag correction, and so another down leg should start unfolding from middle to later half of next week.
1.Nifty down by 0.7% with 0.5 breadth.
2.5th day since the highs of 6284.
3.35th day since the previous swing low of 5350.
4.4th consecutive day below 5ema/20sma.
Nifty drifted below 6000 and closed below it.Nifty's fall after the bounce to 6127 is waning in momentum and thus I expect Nifty to turn up in short term with possible upside target of 6150-6200 by middle of next week.I think Nifty is undergoing ZigZag correction, and so another down leg should start unfolding from middle to later half of next week.
Oct19 Update
Nifty traded above 6100 in first half only to selloff in the last 2 hrs with moderate volumes and neutral breadth.Important points for today.
1.Nifty down by 0.8% with 0.9 breadth.
2.4th down day since the highs of 6284.
3.34th day since the previous swing low of 5350.
4.Nifty closed below 5ema/20sma for 3rd consecutive day.
Nifty faced resistance at 6100+ levels and sold off intensely during last 2hr and closed at the lows of the day.My probable bear scenarios as mentioned earlier say that either Nifty will bottom out for short term in 1-2 days around 5950 and then bounce back above 6100 by middle of next week before going down again OR Nifty will fall big in the next 2-3 days.5960 remains a critical Pivotal point and momentum breach of 5960 with hourly and daily closing below it should likely see Nifty crashing down.
1.Nifty down by 0.8% with 0.9 breadth.
2.4th down day since the highs of 6284.
3.34th day since the previous swing low of 5350.
4.Nifty closed below 5ema/20sma for 3rd consecutive day.
Nifty faced resistance at 6100+ levels and sold off intensely during last 2hr and closed at the lows of the day.My probable bear scenarios as mentioned earlier say that either Nifty will bottom out for short term in 1-2 days around 5950 and then bounce back above 6100 by middle of next week before going down again OR Nifty will fall big in the next 2-3 days.5960 remains a critical Pivotal point and momentum breach of 5960 with hourly and daily closing below it should likely see Nifty crashing down.
Monday, October 18, 2010
Oct18 Update
Nifty dropped below 6000 and bounced back in the later half with higher volumes and -ve breadth.Important points for today.
1.Nifty up by 0.2% with 0.63 breadth.
2.103rd day since the lows of 4786(3rd day since the highs of 6284).
3.33rd day since the previous swing low of 5350.
Nifty bounced back after dropping below 6000 at the open.Today was the 3rd day since the highs.In the bear scenario,Nifty may either be going ABC zigzag correction in which case first leg ie A may be done and nifty may now oscillate between 5950-6200 for next 4-6 days after which will be Wave C.OR Nifty may have Just paused in its downturn and may resume the downtrend by latter half of this week.But for both these scenarios the CRITICAL point will be an hourly/daily close below 5960, below which I expect there to be freefall to the ultimate target.
On the bullish side,If this was just the correction in the rally ,Nifty should close above 6200 levels before the end of this week.
1.Nifty up by 0.2% with 0.63 breadth.
2.103rd day since the lows of 4786(3rd day since the highs of 6284).
3.33rd day since the previous swing low of 5350.
Nifty bounced back after dropping below 6000 at the open.Today was the 3rd day since the highs.In the bear scenario,Nifty may either be going ABC zigzag correction in which case first leg ie A may be done and nifty may now oscillate between 5950-6200 for next 4-6 days after which will be Wave C.OR Nifty may have Just paused in its downturn and may resume the downtrend by latter half of this week.But for both these scenarios the CRITICAL point will be an hourly/daily close below 5960, below which I expect there to be freefall to the ultimate target.
On the bullish side,If this was just the correction in the rally ,Nifty should close above 6200 levels before the end of this week.
Friday, October 15, 2010
Oct15 Update
Nifty continued with its selloff and closed below previous low with moderate volumes and -ve breadth.Important points for today.
1.Nifty down by 1.9% with 0.33 breadth.
2.102nd day since the lows of 4786.
3.32nd day since the previous swing low of 5350.
4.2nd consecutive weekly close in the red.
Nifty's sustained selloff of 2 days and the break of previous low opens the scenario of Nifty having entered medium term reversal ie correction of the rally from 4786. There are multiple wave count options even in bear scenario.My probable bear scenarios say that incase of medium term reversal,Nifty may keep going down towards 5200 probably by next week or early next-next week.Nifty may not bounce to give a shorting chance at this stage .A pause may be there inbetween till Nifty reaches its final target.Also 2 consecutive -ve weekly close increases the probability that Nifty will cut down sharply next week.Since Nifty has not made a new high,I would expect Nifty will bounce after completing the correction and make a new high above 6300.So Correction that may come should be a buying opportunity.
1.Nifty down by 1.9% with 0.33 breadth.
2.102nd day since the lows of 4786.
3.32nd day since the previous swing low of 5350.
4.2nd consecutive weekly close in the red.
Nifty's sustained selloff of 2 days and the break of previous low opens the scenario of Nifty having entered medium term reversal ie correction of the rally from 4786. There are multiple wave count options even in bear scenario.My probable bear scenarios say that incase of medium term reversal,Nifty may keep going down towards 5200 probably by next week or early next-next week.Nifty may not bounce to give a shorting chance at this stage .A pause may be there inbetween till Nifty reaches its final target.Also 2 consecutive -ve weekly close increases the probability that Nifty will cut down sharply next week.Since Nifty has not made a new high,I would expect Nifty will bounce after completing the correction and make a new high above 6300.So Correction that may come should be a buying opportunity.
Thursday, October 14, 2010
Oct14 Update
Nifty gapped up only to selloff at higher levels and closed below 6200.Important points for today.
1.Nifty down by 0.9% with 0.48 breadth.
2.101st day since the lows of 4786.
3.31st day since the lows of 5350.
Nifty could not sustain at higher levels and sold off at 6280+ levels.Yesterdays breakout appeared to be real and headed for new highs above 6300 but todays correction is somewhat more than what I would fit in a breakout scenario.I would expect that Nifty will resume its upward march in 1-2 days.But if Nifty continues to go down and closed below 6090 then Bearish scenario of medium term reversal will have to be looked on more closely.In the bull case scenario, todays selloff shows that volatility is increasing with higher levels indicating near to the top level.Tomorrow is weekly closing and would be interesting to see where Nifty will close.For the past 10 years October has seen atleast one selloff/pullback as last week of october has some seasonal effect.Since we are approaching a top ,a selloff/pullback is very much in the offing now.
1.Nifty down by 0.9% with 0.48 breadth.
2.101st day since the lows of 4786.
3.31st day since the lows of 5350.
Nifty could not sustain at higher levels and sold off at 6280+ levels.Yesterdays breakout appeared to be real and headed for new highs above 6300 but todays correction is somewhat more than what I would fit in a breakout scenario.I would expect that Nifty will resume its upward march in 1-2 days.But if Nifty continues to go down and closed below 6090 then Bearish scenario of medium term reversal will have to be looked on more closely.In the bull case scenario, todays selloff shows that volatility is increasing with higher levels indicating near to the top level.Tomorrow is weekly closing and would be interesting to see where Nifty will close.For the past 10 years October has seen atleast one selloff/pullback as last week of october has some seasonal effect.Since we are approaching a top ,a selloff/pullback is very much in the offing now.
Wednesday, October 13, 2010
Oct13 Update
Nifty bounced up after the 4 days of correction with high volumes and +ve breadth. Important points of today.
1.Nifty up by 2.35% with 2.2 breadth.
2.100th day of rally since the lows of 4786.
3.30th day since the previous swing low 5350.
Nifty bounced and made a new yearly high and closed above 6200 levels.The breadth was good but not very strong indicating Nifty will move further up with moderate price action for another few days.In 6300-6400 range,Nifty's rally from Mar09 will reach equivalence with the fall from Jan08-Oct08 on weekly and daily basis.I would look for a breach of the low of 6057 as the signal for medium term reversal now.I expect Nifty to have +ve weekly closing this week and next week at the least.Any weekly closing at the middle or lower end of the weekly range would be early signs of reversal for Nifty.
1.Nifty up by 2.35% with 2.2 breadth.
2.100th day of rally since the lows of 4786.
3.30th day since the previous swing low 5350.
Nifty bounced and made a new yearly high and closed above 6200 levels.The breadth was good but not very strong indicating Nifty will move further up with moderate price action for another few days.In 6300-6400 range,Nifty's rally from Mar09 will reach equivalence with the fall from Jan08-Oct08 on weekly and daily basis.I would look for a breach of the low of 6057 as the signal for medium term reversal now.I expect Nifty to have +ve weekly closing this week and next week at the least.Any weekly closing at the middle or lower end of the weekly range would be early signs of reversal for Nifty.
Tuesday, October 12, 2010
Oct12 Update
Nifty drifted down and broke the lows of previous two days with moderate volumes and -ve breadth.Important points for today.
1.Nifty down by 0.75% with 0.55 breadth.
2.99th day since the lows of 4786.
3.29th day since the previous swing low of 5350.
Nifty moved in 6050-6150 range today and closed in the middle of the range.Yesterdays move thus was small bounce after short term capitulation of two days fall.Today's fall may have one more down leg left, probably for a close below the lows of 6057.I expect a bounce from hereon after this correction.But if the fall is big trend reversal,price action should increase with subsequent fall in Nifty.
1.Nifty down by 0.75% with 0.55 breadth.
2.99th day since the lows of 4786.
3.29th day since the previous swing low of 5350.
Nifty moved in 6050-6150 range today and closed in the middle of the range.Yesterdays move thus was small bounce after short term capitulation of two days fall.Today's fall may have one more down leg left, probably for a close below the lows of 6057.I expect a bounce from hereon after this correction.But if the fall is big trend reversal,price action should increase with subsequent fall in Nifty.
Monday, October 11, 2010
Oct11 Update
Nifty was sideways today with moderate volumes and +ve breadth.Important points for today.
1.Nifty up by 0.5% with 1.9 breadth.
2.98th day since the lows of 4786.
3.28th day since the previous swing low of 5350.
Nifty moved in a narrow range of 6100-6150 broadly.Nifty has been facing resistance above 6000 and moving slowly.Todays move looks to be start of a new move upwards.Since the previous upmove lasted for 3 days ,I would expect around the same ie 3-5 number of days for this move also.The important point to note will be how much Nifty will be able to extend the previous high of 6223.A new high if,100-200 points higher only could well be the top of this move as well of the complete rally(from 4786).
1.Nifty up by 0.5% with 1.9 breadth.
2.98th day since the lows of 4786.
3.28th day since the previous swing low of 5350.
Nifty moved in a narrow range of 6100-6150 broadly.Nifty has been facing resistance above 6000 and moving slowly.Todays move looks to be start of a new move upwards.Since the previous upmove lasted for 3 days ,I would expect around the same ie 3-5 number of days for this move also.The important point to note will be how much Nifty will be able to extend the previous high of 6223.A new high if,100-200 points higher only could well be the top of this move as well of the complete rally(from 4786).
Saturday, October 9, 2010
Oct8 Update
Nifty remains in corrective mode with moderate volumes and -ve breadth.Important points for today.
1.Nifty down by 0.3% with 0.57 breadth.
2.97th day since the lows of 4786.
3.27th day from previous swing low of 5350.
4.1st weekly correction after 5 weeks.
Nifty continued its correction but recovered from the lows towards the end.For the short term correction,this is near capitulation now.So a Bounce should come for Nifty if this is a short term correction and go beyond 6200 closing basis.If not then the correction should continue with increased momentum inorder to signal medium term reversal.I expect Nifty may have atleast 1 more bounce in it before it undergoes medium term reversal in the last 2 weeks of october.
1.Nifty down by 0.3% with 0.57 breadth.
2.97th day since the lows of 4786.
3.27th day from previous swing low of 5350.
4.1st weekly correction after 5 weeks.
Nifty continued its correction but recovered from the lows towards the end.For the short term correction,this is near capitulation now.So a Bounce should come for Nifty if this is a short term correction and go beyond 6200 closing basis.If not then the correction should continue with increased momentum inorder to signal medium term reversal.I expect Nifty may have atleast 1 more bounce in it before it undergoes medium term reversal in the last 2 weeks of october.
Thursday, October 7, 2010
Oct7 Update
Nifty failed to cross 6200 levels and came down with high volumes and -ve breadth.Important points for today.
1.Nifty down by 1.1% with 0.52 breadth.
2.96th day since the lows of 4786.
3.26th day since the lows of 5350.
Nifty corrected moderately today.Todays closing was below the 5ema,so short term capitulation is over or nearly over(by tomorrow).So I expect Nifty to bounce from here towards 6300+ levels.But if this correction deepens and continues below 6000 then this could be the medium term reversal of the Nifty with confirmation on hourly and daily close below previous low of 5963.
1.Nifty down by 1.1% with 0.52 breadth.
2.96th day since the lows of 4786.
3.26th day since the lows of 5350.
Nifty corrected moderately today.Todays closing was below the 5ema,so short term capitulation is over or nearly over(by tomorrow).So I expect Nifty to bounce from here towards 6300+ levels.But if this correction deepens and continues below 6000 then this could be the medium term reversal of the Nifty with confirmation on hourly and daily close below previous low of 5963.
Wednesday, October 6, 2010
Oct6 update
Nifty was in sideways move with upward bias with high volumes and +ve breadth. Important points for today.
1.Nifty up by 0.65% with 1.6 breadth.
2.95th day of rally since the lows of 4786.
3.25th day of rally since 5350.
Nifty is extending its rally and not giving up easily, belying all expectations of correction.But Nifty's state is quite stretched and momentum is not so strong in the last few days.I would expect Nifty to exhaust itself while rallying and thus would appear signs of reversal.Since October last week has seen some of the bottoms for the Nifty correction,I would look for the signs of exhaustion in Nifty now.My most probable scenario for Nifty is for a cut to ~5200.
1.Nifty up by 0.65% with 1.6 breadth.
2.95th day of rally since the lows of 4786.
3.25th day of rally since 5350.
Nifty is extending its rally and not giving up easily, belying all expectations of correction.But Nifty's state is quite stretched and momentum is not so strong in the last few days.I would expect Nifty to exhaust itself while rallying and thus would appear signs of reversal.Since October last week has seen some of the bottoms for the Nifty correction,I would look for the signs of exhaustion in Nifty now.My most probable scenario for Nifty is for a cut to ~5200.
Tuesday, October 5, 2010
Oct5 Update
Nifty was sideways with -ve bias and high volumes and +ve breadth.Important points for today.
1.Nifty down by 0.25% with 1.35 breadth.
2.94th day since the lows of 4786.
3.24th day since the swing low of 5350.
Nifty failed to go above 6200 levels today and closed in the red.If this is a consolidation/pause,Nifty will bounce up above 6200 in next 1-2 days else Nifty should go to previous swing low of 5950.On the down scenario , I expect Nifty to hang/bounce from around 5950 for 2-3 days before falling down towards 5500 levels.The move from 5950-5500 should be sharp and swift.Remaining 3 days of this week will clear up whether Nifty is positioning itself for the fall OR it wants to scale up further.
1.Nifty down by 0.25% with 1.35 breadth.
2.94th day since the lows of 4786.
3.24th day since the swing low of 5350.
Nifty failed to go above 6200 levels today and closed in the red.If this is a consolidation/pause,Nifty will bounce up above 6200 in next 1-2 days else Nifty should go to previous swing low of 5950.On the down scenario , I expect Nifty to hang/bounce from around 5950 for 2-3 days before falling down towards 5500 levels.The move from 5950-5500 should be sharp and swift.Remaining 3 days of this week will clear up whether Nifty is positioning itself for the fall OR it wants to scale up further.
Monday, October 4, 2010
Oct4 Update
Nifty continued its upmove and moved beyond 6200 before pulling back below 6200 with high volumes and -ve breadth.
1.Nifty up by 0.25% with 0.8 breadth.
2.93rd day of rally from previous swing low of 4786.
3.23rd day of rally from 5350.
Nifty continued with its uptrend but the pullback after 6200 indicates selling pressure coming in at higher levels.If Nifty does not cross todays high in next 2-3 days then a bigger pullback may happen.Since the number of days for this leg of rally as well for the rally from May25 seems quite extended at this point,so a bigger pullback will likely be retracement of the rally from 4786.
1.Nifty up by 0.25% with 0.8 breadth.
2.93rd day of rally from previous swing low of 4786.
3.23rd day of rally from 5350.
Nifty continued with its uptrend but the pullback after 6200 indicates selling pressure coming in at higher levels.If Nifty does not cross todays high in next 2-3 days then a bigger pullback may happen.Since the number of days for this leg of rally as well for the rally from May25 seems quite extended at this point,so a bigger pullback will likely be retracement of the rally from 4786.
Friday, October 1, 2010
Oct1 Update
Nifty surged above 6100 today with high volumes and +ve breadth.Important points for today.
1.Nifty up by 1.9% with 2.7 breadth.
2.92 day of rally since the lows of 4786.
3.22nd day of rally since 5350/5402.
4.5th consecutive up week for Nifty.
Nifty continues its march upward.Todays action was good momentum with +ve breadth and volumes unlike yesterday.Nifty's rally today has turned into +ve breadth from weak to -ve breadth since many days.Such a transition occuring on 22nd day of a mature rally points towards rally heading towards capitulation because Nifty has not yet undergone any significant(2 or more bars) daily correction.Though Nifty can run more and make a new high above 6357 from here,I would like to wait for a daily correction before initiating any short or long position.
1.Nifty up by 1.9% with 2.7 breadth.
2.92 day of rally since the lows of 4786.
3.22nd day of rally since 5350/5402.
4.5th consecutive up week for Nifty.
Nifty continues its march upward.Todays action was good momentum with +ve breadth and volumes unlike yesterday.Nifty's rally today has turned into +ve breadth from weak to -ve breadth since many days.Such a transition occuring on 22nd day of a mature rally points towards rally heading towards capitulation because Nifty has not yet undergone any significant(2 or more bars) daily correction.Though Nifty can run more and make a new high above 6357 from here,I would like to wait for a daily correction before initiating any short or long position.
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