Nifty slipped more than 100 points and it touched a low of 9788 and the recovery was equally good and closed above 9838 which is a trend deciding number.
Bank Nifty also fell sharply and could not close above trend deciding number 24288 which is far away from reach. In fact BNF is not supporting Nifty.
We have seen Nifty recovering from low of 9700 level twice with in this month. Any slippage below 9800 in the coming week may take nifty to 9737/9700. Bank Nifty likely to touch 23833.
Investor must note that it will be too difficult to climb to 10000 level again as global cues are not supporting. Dow Jones have started the downward journey.
Please cut your long position and be ready for a correction. Remember, this bull run has started in January 2017 and only during August market has started correcting. So far the bull run has added 2000 + points to Nifty. Be ready for 30% correction of 600 Points. We will definitely see 9500. (10150-600). (BNF - 2000 Points). Definitely correction phase could prolong for a month or two before market moves ahead for another run.
Let us be prepared to face correction which is going to be little more serious from next week on wards.
Happy Traing!
Few days I am observing the trading pattern of best 10 contributors of Nifty and found mostly hectic activity by the bulls and candle pattern specially on 5 minute charts where no such aggressive move is forming and mostly the Pivot points are positioning very near the long term average. Your advice may correct me to trade well.I may be wrong also.
ReplyDeleteWe are in the last leg of bull run. Any moment you can expect carpet will be pulled. Puts have been in lime light and they cannot breach the low formed. So you cannot expect big up move. You can analyse 9800 PE and confirm. Similarly calls cannot go up and break the previous highs. At last put will win which is in upper hand and the trend is down.
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