📊SHORT MARKET REPORT📊
Bullishness prevailed. Short covering happened after 17336. Option buyers got suped up as the decay was massive.
Getting to the point, we are still on the last leg of the correction wave. To negate that, nifty needs to sustain above 17532. Nifty had an unprecedented but expected up move today and there is some possibility that this can happen. I tend to fix my eyes more on S&P 500 rather than Dow futures which is commonly followed by Indian analysts. There is no right or wrong way in that. But S&P 500 is showing typical correction wave patterns and for that to get negated it has to sustain above 4655. So, if these two happen together, we can get an indication that bull run is back. That's the indication only. Confirmation would be sustaining above 17800.
It is always better to analyse things as it is. So, I should not cling to the bearish outlook I had and respect today's upmove. Taking that into consideration, market is still in troubled waters and has to break out of those key levels.
On the bearish side,
1. Sensex has 10% correction due which is a big overhang in my opinion.
2. The 4th sub wave is still on and has not been negated as a bullish reversal.
3. Nifty outperformed bank nifty. So bank nifty can still drag.
Auto sector would be in focus as some stocks like Mahindra would likely outperform.
Bullishness prevailed. Short covering happened after 17336. Option buyers got suped up as the decay was massive.
Getting to the point, we are still on the last leg of the correction wave. To negate that, nifty needs to sustain above 17532. Nifty had an unprecedented but expected up move today and there is some possibility that this can happen. I tend to fix my eyes more on S&P 500 rather than Dow futures which is commonly followed by Indian analysts. There is no right or wrong way in that. But S&P 500 is showing typical correction wave patterns and for that to get negated it has to sustain above 4655. So, if these two happen together, we can get an indication that bull run is back. That's the indication only. Confirmation would be sustaining above 17800.
It is always better to analyse things as it is. So, I should not cling to the bearish outlook I had and respect today's upmove. Taking that into consideration, market is still in troubled waters and has to break out of those key levels.
On the bearish side,
1. Sensex has 10% correction due which is a big overhang in my opinion.
2. The 4th sub wave is still on and has not been negated as a bullish reversal.
3. Nifty outperformed bank nifty. So bank nifty can still drag.
Auto sector would be in focus as some stocks like Mahindra would likely outperform.
