Disclaimer: These are my personal musings and only meant for entertainment, not as trading advise. To view the full chart, right click on the thumbnail and open in a new window.The Nifty finally held its head above the crucial bottleneck which was holding it back. There is not much to add to yesterday’s analysis. On the intraday charts, the Nifty is looking overbought, which could lead to some correction. But again, as mentioned yesterday, we are now on a “buy on dips” scenario.
Also a notable thing on the Nifty futures chart is that 25 July was a rising window day. That rising window is still open, which adds further weight to the bullish scenario.
Today, the bears did have to run for cover. Then the active bulls managed to keep the index above the reach of those would-be bulls who were waiting on the sidelines. These fence sitter traders were hoping for a downside dip, which could allow them a “safer” long entry. However, as we know, the market does not have a habit of obliging. Towards mid-session, we saw these disappointed bulls chasing stocks. That added more bullish fuel.
It is normally observed, that when bulls start chasing stocks, the market has a habit of shaking them out. Also, the trend is unable to sustain itself for long. Further, we notice that in the last two months, we have not had a prolonged trend. The Nifty has trended up for a maximum of seven days in a row.
The 3188 level on the Nifty is now going to be a level to watch out for. Also 3038, 3047 and 2996 levels are technically crucial.
Going ahead, for the short term, we could see a correction till the 3070 levels, and a probable projected price target of 3143.
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