In my weekly review (link below) post, I said
There are two possibilities for the coming week.
Possibility 1: Consolidation in zone 11312 - 11050. This basically means, the move on Friday could not get great follow up selling.
Possibility 2: New downswing starts which takes NIFTY below 11000, around 10830 as the first target. This move has to be fast and completed this week to show strength in selling and confirmation of intermediate top.
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From today’s price action, it looks like Possibility 1 is likely.
My trades today
No trades intraday. It did not hit any level prior to 2.30 PM. So I could not trade.
My observations for the day
NIFTY formed a hammer like candle, closing 0.61% up.
BANK NIFTY again mostly flat with gain of 0.10%.
VIX dropped little ~ 1.63%.
The Advance Decline ratio was good 39 to 11.
Reliance Industries and BANK nifty both lagged for the day.
Option data showing confirmation of consolidation in the range 11200-11400.
My view for tomorrow
With today’s price action nothing changed. I need to see a clear signal to change my view, which is currently bearish consolidation. Tomorrow, if NIFTY resumes, the downtrend again back towards the bottom of the range 11110-11140, it will strengthen the view. Any close above 11320, I need to change my side.
Weekly Post : August 17 - 21
There are two possibilities for the coming week.
Possibility 1: Consolidation in zone 11312 - 11050. This basically means, the move on Friday could not get great follow up selling.
Possibility 2: New downswing starts which takes NIFTY below 11000, around 10830 as the first target. This move has to be fast and completed this week to show strength in selling and confirmation of intermediate top.
========================================================================
From today’s price action, it looks like Possibility 1 is likely.
My trades today
No trades intraday. It did not hit any level prior to 2.30 PM. So I could not trade.
My observations for the day
NIFTY formed a hammer like candle, closing 0.61% up.
BANK NIFTY again mostly flat with gain of 0.10%.
VIX dropped little ~ 1.63%.
The Advance Decline ratio was good 39 to 11.
Reliance Industries and BANK nifty both lagged for the day.
Option data showing confirmation of consolidation in the range 11200-11400.
My view for tomorrow
With today’s price action nothing changed. I need to see a clear signal to change my view, which is currently bearish consolidation. Tomorrow, if NIFTY resumes, the downtrend again back towards the bottom of the range 11110-11140, it will strengthen the view. Any close above 11320, I need to change my side.
Weekly Post : August 17 - 21
