08 Aug ’23 Post Mortem on Nifty - 60% neutral 40% bearish
Nifty made an interesting opening 2 hour price action today. With a good gap up opening and then a strong rejection at 19640 levels to hit an intraday low of 19533 by 11.35. The selling pressure was strong, but the financial sector did not lend support. NiftyIT was falling - but that got arrested and hence the reversal post 11.35.
Currently we have a situation where Nifty50 did not break through the descending trend line. I had revised my bias from neutral to bullish yesterday with the assumption that we will have a breakout today.
Instead what has formed currently is more or less like a bearish trend continuation pattern if Nifty does not cut through 19680 by tomorrow. My personal conviction is 60% neutral and 40% bearish tomorrow. Few sectors like Nifty Metal, Nifty Energy, Nifty FMCG, Nifty Commodities, Nifty Auto, Nifty Consumption were in red today which is building a case for a bearish event. Guess it's safe to monitor the trades tomorrow and update if we have a change in stance.
Currently we have a situation where Nifty50 did not break through the descending trend line. I had revised my bias from neutral to bullish yesterday with the assumption that we will have a breakout today.
Instead what has formed currently is more or less like a bearish trend continuation pattern if Nifty does not cut through 19680 by tomorrow. My personal conviction is 60% neutral and 40% bearish tomorrow. Few sectors like Nifty Metal, Nifty Energy, Nifty FMCG, Nifty Commodities, Nifty Auto, Nifty Consumption were in red today which is building a case for a bearish event. Guess it's safe to monitor the trades tomorrow and update if we have a change in stance.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.