Nifty Trend What next?
As the market closed on negative note on the last day of the previous week, we have observed a mini trend reversal on the Nifty daily charts. First four days of last were were in green, and last trading session was in red, as expected. Heavy profit booking was seen on the last day of the previous week.
Now, with two weeks of time remaining with 4 days each before the year ends, let us see where the market is heading. The markets are in consolidation, rather correction mode as it has hit the all time high of 9119 in the month of March, 2015. Currently trading in 7500 to 7900 range, the market has already shown 17% of reversal. For an index, its not a small amount.
Today, on the opening day of second last week of current calendar year, we have seen Nifty opening gap down. Remain choppy for some time, and then started rally towards north. Nifty opened gap down in the morning at 7745.65 and went down 7733.45. Mere 12 points downside and then suddenly it took U turn in first 10 minutes of the opening and hit the high of 7840.75 and eventually ended up closing just below day's high at 7834.45.
This creates a candle body of almost 88 points, which has generated a bullish pattern on the chart. Nifty, started reversal on first day of previous week and ended red on the last day, has again opened up the week with a wonderful rally of almost 88 points.
This indicates the up move continue in the market. How much this bull phase will run that is a different story, but we can definitely say that Nifty is also in the mood of Christmas celebrations. Its a good sign for the investors and traders.
Another good factor is that on daily chartts, Nifty has generated Buy call in our software. You can observe it in the image above. It is another sign of continuation of the bull run.
Now, how much this bull run will continue depends upon various factors, but we can definitely say that despite of political and social turmoils in the country, and a long consolidation/correction since March, 2015, markets still looks very positive and will generate good returns for the investors in 2016.
The trend will remain positive in 2016 if Nifty ends up 2015 above 7800 and remain above it throughout 2016. If it breaks the level of 7700 on downside at any point of time in 2016, then it may went down up to 7000 and beyond.
We wish investors a very good and profitable 2016 and Merry Christmas in advance...
Happy Trading...Trend is Friend...
Meanwhile, all major stocks also have been corrected in the range of 10% to 30 %. Very few stocks are in continuous up move. The stock specific rally is still continued, but for a very small number of stocks. Few of them are - Auropharma, Bajaj Finance, Maruti etc.
- Anand Singh Gaur
- Sunil Kothari