No reason to panic for investors as long as Nifty is above 9600.
Nifty is comfortably above the long term support line. As long as it is above this line near 9600 levels, there is no reason to panic for long term investors.
On Fibonacci levels, 10661 is important 61.8 % retracement level, even if Nifty has to cross this, some efforts or consolidation cannot be ruled out around 11600-11650.
Weekly RSI has been at 54, which is the highest level since the March lows, with no signs of divergence with price. This is quite bullish for medium to long term investors and positional traders.
Sep 2008, Aug 2011 and Mar 2020 are three periods when the Nifty RSI on weekly charts have gone below 20. Recovery from March to June 2020, has been the sharpest.
I believe even the similar liquidity gush may not be able to take it further beyond this point with the same ease.
Though there are no signs of weakness as such, but liquidity driven rallies that are not backed by fundamentals, tend to surprise with no prior warning.
Dow and other major global markets have been supporting our markets since March end, these are not looking as strong as they were a few days back. Though at the moment those are consolidating only, a careful watch should be kept on them.
I don't think following momentum beyond this point will be a good idea, though the dips can be bought with medium / long term view as long as 9600 holds, some strong looking individual stocks may offer better results than the broader indices.
I always recommend utilising safer strategies than naked derivative positions, this is even more relevant at this point of time. 10000 to 11000 is looks like a the broader range for the month, your strategies can be designed keeping this range in mind.
On Fibonacci levels, 10661 is important 61.8 % retracement level, even if Nifty has to cross this, some efforts or consolidation cannot be ruled out around 11600-11650.
Weekly RSI has been at 54, which is the highest level since the March lows, with no signs of divergence with price. This is quite bullish for medium to long term investors and positional traders.
Sep 2008, Aug 2011 and Mar 2020 are three periods when the Nifty RSI on weekly charts have gone below 20. Recovery from March to June 2020, has been the sharpest.
I believe even the similar liquidity gush may not be able to take it further beyond this point with the same ease.
Though there are no signs of weakness as such, but liquidity driven rallies that are not backed by fundamentals, tend to surprise with no prior warning.
Dow and other major global markets have been supporting our markets since March end, these are not looking as strong as they were a few days back. Though at the moment those are consolidating only, a careful watch should be kept on them.
I don't think following momentum beyond this point will be a good idea, though the dips can be bought with medium / long term view as long as 9600 holds, some strong looking individual stocks may offer better results than the broader indices.
I always recommend utilising safer strategies than naked derivative positions, this is even more relevant at this point of time. 10000 to 11000 is looks like a the broader range for the month, your strategies can be designed keeping this range in mind.