Disclaimer: These are my personal thoughts and not trading advise. To view the full chart, right click on the thumbnail and open in new window.It was a foregone conclusion that the market would strengthen today, given the fact that it had tanked on Friday on false rumours.
Just goes to show how the market abhors uncertainty.
Anyway, as can be seen from the chart, the market did hold on the second line of defence and rallied forth. It has indeed clawed back into the congestion zone, where it has spent quite some time.
A short term retracement level placed at 3157 could be the first pause the market could take. A minor trendline at 3182 could be the second level where the Nifty could face stiff resistance. This level of 3182 also coincides with a 333% projection from a minor pivot.
Therefore, it could be suggested that traders could remain on high alert around that level.
If this trendline is violated towards the upside, then we could look at 3214. With such volatility still prevalent; it is always advisable to play the derivatives with hedged positions. Cash investors could commit small percentages of capital on diverse stocks and have a predetermined exit plan.
Trade happy. That way you make lesser mistakes.
1 comment:
Hello,
astroreasons.blogspot.com
for my take on the sort term and medium term .
Good analysis but we are in a voltile phase in my opinion and its getting more volatile.
~~ Natasha !!
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