Nifty has been following a rising wedge formation ever since the lows made in March. This is in essence how it transpired before the fall in February as well.
With RSI and stocks edging towards the sharper edge of wedge with ever reducing vols, its likely there is a sharp move to the downside coming soon.
Fundamentals along with Technicals are now weighing on Nifty and a healthy correction is possible by end of June/early July. Can we see a retest of the March lows? Probably not. But there could be a healthy correction to 9500 or even a retest of the 8800 level. Before that Nifty could touch 10,500 to 10,600 before making the move.
What am I doing? I have taken some bear puts. Call me foolish for going against this central banks driven liquidity rush.
With RSI and stocks edging towards the sharper edge of wedge with ever reducing vols, its likely there is a sharp move to the downside coming soon.
Fundamentals along with Technicals are now weighing on Nifty and a healthy correction is possible by end of June/early July. Can we see a retest of the March lows? Probably not. But there could be a healthy correction to 9500 or even a retest of the 8800 level. Before that Nifty could touch 10,500 to 10,600 before making the move.
What am I doing? I have taken some bear puts. Call me foolish for going against this central banks driven liquidity rush.
Trade active:
As mentioned, NIFTY did go up and test the upper bound of the wedge(turned out to be 10,550) and has now made a small correction move down to 10,480.This will be a crucial support level which if broken on a closing basis will confirm that the trade is now fully active.
Trade active:
As mentioned earlier in the day, once 10480 got breached market quickly tumbled another 200 points. More red likely to come tomorrow
Trade closed: stop reached:
While the market is still in the wedge, the correction didn't complete as expected.