selling was triggered by dow zones sell off.(after a US lawmaker called for Trump’s impeachment over his alleged involvement in obstruction of justice, after news reports revealed that he had asked then-Federal Bureau of Investigation (FBI) director James Comey to stop investigations against his former National Security Advisor Michael flynn)
now moving forward- big question is what next?
so we need to first focus what happened in last few weeks
Nifty soared to a new lifetime intraday high of 9532.60 on Wednesday but failed to capitalise on the up move and ended the week on a flat note, up by a paltry 0.30%. The index witnessed humongous selling pressure at higher levels on Thursday as Nifty made an exhaustion gap. That exhaustion gap was however filled on Friday as Domestic stocks saw a gap-up opening boosted by the Goods and Services Tax ( GST ) Council finalising rates and backed the 1st July, 2017 deadline for rolling out the unified indirect tax. Meanwhile, the Goods and Services Tax ( GST ) Council on 19 May, 2017 finalised tax rates for services under the GST regime, scheduled to kick-in from 1st July, 2017
now all news about GST is out , so what we should expect now
Is GST impact is already factored in the markets?
on weekly chart we saw a formation of , which to validate needs a neagtive closing this week i.e below 9390
Weekly not showing any fatigue (divergence).
So a dip is likely but we would revisit the top.
on break-down has yet to happen. So no further verdict possible as yet.
below 9390 we can see a supports at 9300,9255,9220
We believe a round of breather from here on will make the markets healthier by working off short-term overbought conditions, thereby create room for the next leg of up move within the ongoing uptrend. We maintain the immediate support threshold for index at 9250 region as it is the confluence of following:
a)Base of the recent consolidation and the breakout area of March-April consolidation is placed at 9270
b) gap area formed on April 25, 2017 is placed between 9250 and 9217
c) of the April-May 2017 up move is placed at 9258 levels
short nifty below 9390 or at higher level near 9500 with sl of 9550.(option route can be used by selling 9500,9600 calls as we can see a time wise correction as well)
in the end our earlier post
long term view of market
long term view is intact . a positional trader or investor can use all falls for buying
* plan your trade i can be completely wrong as i m not a sebi registered advisor.