08 Aug ’23 Post Mortem on Nifty - 60% neutral 40% bearish
Nifty made an interesting opening 2 hour price action today. With a good gap up opening and then a strong rejection at 19640 levels to hit an intraday low of 19533 by 11.35. The selling pressure was strong, but the financial sector did not lend support. NiftyIT was falling - but that got arrested and hence the reversal post 11.35.
Currently we have a situation where Nifty50 did not break through the descending trend line. I had revised my bias from neutral to bullish yesterday with the assumption that we will have a breakout today.
Instead what has formed currently is more or less like a bearish trend continuation pattern if Nifty does not cut through 19680 by tomorrow. My personal conviction is 60% neutral and 40% bearish tomorrow. Few sectors like Nifty Metal, Nifty Energy, Nifty FMCG, Nifty Commodities, Nifty Auto, Nifty Consumption were in red today which is building a case for a bearish event. Guess it's safe to monitor the trades tomorrow and update if we have a change in stance.
Currently we have a situation where Nifty50 did not break through the descending trend line. I had revised my bias from neutral to bullish yesterday with the assumption that we will have a breakout today.
Instead what has formed currently is more or less like a bearish trend continuation pattern if Nifty does not cut through 19680 by tomorrow. My personal conviction is 60% neutral and 40% bearish tomorrow. Few sectors like Nifty Metal, Nifty Energy, Nifty FMCG, Nifty Commodities, Nifty Auto, Nifty Consumption were in red today which is building a case for a bearish event. Guess it's safe to monitor the trades tomorrow and update if we have a change in stance.
