Is this the end of Rally? Many people might be wondering in the NSE market. Media certainly must have started their part to invite bearish analyst and started paying them big bucks to start analyzing the market in bearish territory. I have received a call from very close friend with the similar question.
In reality, nobody knows and nobody can know. What we can do is understand markets current situation and then provide probability of where it may move in next couple of sessions. That's all we can do. People with the ego cloud can't survive in this market as know body can predict the market.
Lets begin analyzing the current situation.
Based on the graph, we can see that Nifty has made very amazing run in last 8-9 weeks. Supporting trend line is almost at 45 angle, which is very very hard to find in any market for this long.
But this Fridays action has made me worried. As you may know, I don't like to see gap ups on top of the market. We had gap up opening and closed in red candle which is a very very negative move in this market at this time. Entire days spread has been around 60 and market gave up 40 rs. at closing. That means it wasn't a strong day at all and it looked like fabricated gap up move in the market.
Friday we had the weakest market breadth compare to price movement since start of the rally. This happening after such a big move shows weakness in moving higher.
Our immediate support is at 5417. Anything below 5330, we may be looking at 5166.
I am not bearish yet but strongly believe that pullback is really needed in this market.
In reality, nobody knows and nobody can know. What we can do is understand markets current situation and then provide probability of where it may move in next couple of sessions. That's all we can do. People with the ego cloud can't survive in this market as know body can predict the market.
Lets begin analyzing the current situation.
Based on the graph, we can see that Nifty has made very amazing run in last 8-9 weeks. Supporting trend line is almost at 45 angle, which is very very hard to find in any market for this long.
But this Fridays action has made me worried. As you may know, I don't like to see gap ups on top of the market. We had gap up opening and closed in red candle which is a very very negative move in this market at this time. Entire days spread has been around 60 and market gave up 40 rs. at closing. That means it wasn't a strong day at all and it looked like fabricated gap up move in the market.
Friday we had the weakest market breadth compare to price movement since start of the rally. This happening after such a big move shows weakness in moving higher.
Our immediate support is at 5417. Anything below 5330, we may be looking at 5166.
I am not bearish yet but strongly believe that pullback is really needed in this market.
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