These are my personal musings. These are not in any way meant to be trading advise. To view the full chart, right click and open in a new window.Contrary to what was expected, the market has gone into a volatility mode rather than breaking out. This normally happens when the market is correcting. With just a week away from derivatives expiry, this market could shake out long positions. In such an event, the Nifty could achieve the 5070 level or thereabouts.
We also see a strange phenomenon. Normally, this type of pattern does not occur at a market high. A potential head and shoulder pattern seems to be emerging on the intraday charts. For this pattern to be validated, the Nifty should not go below 5500 levels.
We could see a small upside tomorrow. However, for the short term trend to change to upwards, the Nifty should move above 5924 and not violate the bottom of 5756.
We could maintain our suggestion of bullish outlook and could continue to buy on dips. At times like this, it is very important to wait for a bullish pattern to emerge on the intraday charts, rather than try and jump ahead of the market. As a reminder, the example of a bullish pattern is already placed on my Blog.
Trade happy after planning your trade.
1 comment:
AMAZING ! ITS 3.30 ON 21 NOV and we have lost 2000 pts already from top !
i thought 5070 was a typographical mistake ! but realised at 3.30 !
reg
ketan
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