My weekly market breadth indicator suggest that we are in a bull market which is a good sign. Daily market breadth indicator shows mixed data. Again we are up against the resistance where we have seen major sell-offs in the market so this is a natural human reaction to SOH (sit on hands). Friday Nifty ended with a Doji which signify that demand and supply are against each other. And who ever has more force, market will follow that direction.
Most big cap stocks also ended with good positive week with little higher volume than their average volume. Their daily graphs are showing little hesitation to move higher. This is a expected behaviour with doji in Nifty.
If we have close below 4830 that means supply is still there. If we get strong negative Market Breadth in the market (200-400% negative), we may be looking for new lower low in this market.
One more indicator I used to use in my trading (just stopped using in daily analysis) is Standard deviations and Nifty daily graph is touching its 2nd standard deviation band. Based on the mean reversion theory, sooner or latter every market comes back to its mean.
We will need major Market Breadth and Dollar volume push to break next 100 pionts (5070 to 5170) level. I am still bullish with this market until we close below 4830 or we see major negative Market Breadth or big selling. (were we have seem major negative Market Breadth in past).
I believe, If one has long position in Nifty market, it would make sense to keep most of their profit by selling partial position and remaining position with tight stop.
Most big cap stocks also ended with good positive week with little higher volume than their average volume. Their daily graphs are showing little hesitation to move higher. This is a expected behaviour with doji in Nifty.
If we have close below 4830 that means supply is still there. If we get strong negative Market Breadth in the market (200-400% negative), we may be looking for new lower low in this market.
One more indicator I used to use in my trading (just stopped using in daily analysis) is Standard deviations and Nifty daily graph is touching its 2nd standard deviation band. Based on the mean reversion theory, sooner or latter every market comes back to its mean.
We will need major Market Breadth and Dollar volume push to break next 100 pionts (5070 to 5170) level. I am still bullish with this market until we close below 4830 or we see major negative Market Breadth or big selling. (were we have seem major negative Market Breadth in past).
I believe, If one has long position in Nifty market, it would make sense to keep most of their profit by selling partial position and remaining position with tight stop.
GOOD DETAILS
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