Since last week we have observed that we were on a bullish bias as there was strong weekly candle. The closing of last week too was on a positive note. However , we were always cautious each day with our support zones as market was due for its correction. Our weekly view was on bullish bias as well. However it was important that today's move should have been positive and should have broke above HIGH of last week. We saw that we opened today with gap up and since then we have only seen the downside on intraday basis. For market to move above it was important to take support at our Short Term Zone which was 11600 as mentioned in previous analysis. However we observe that the same was broken , and market moved further with strong downturn before it resisted onto our next MEDIUM TERM ZONE of 11350.
As you can see that support levels are so important that market does react to those levels. As on today NIFTY has shown some support around 11350 and there is also a possibility to reverse from here on as this is our support. It will be important to see the opening tomorrow and the trend if continues and breaks below todays LOW i.e 11325 then we may see our next two levels as below
Support Zone Level A is 11250 (this is the level where Market may look to bounce back and may work as a bear trap for all the short positions)
Support Zone Level B is 10750 (This level comes and act as strongest of all levels and Market if breaks further may certainly correct upto the same)
There were certainly several factors which led to market disruption today which also act as a trigger for correction
1) India and China relationship
2) SEBI new rules are applicable from tomorrow
3) GDP data is lower than market expectation
So this are the certain reasons that market reacted upon and as the correction was due it was about to come. So ensure to watch the screen and trade and look after important support zones as mentioned above.
Now as of today as there is risk involved there are no stocks to watch our for as volatile movements are expected.
The HOT STOCK which we discussed about in yesterday's post has been 20 percent up today and has certainly surpassed our initial target. However in order to move further it needs to be consistent above that level. Watch out for detailed technical analysis in yesterday's post.
Caution : The views mentioned above are only my suggestions and do not consider it as a TIP or RECOMMENDATIONS. Before taking any further action on the same please consult your financial advisor and work as per your own risk appetite.
