7th Dec ’23 - Should I change my Nifty stance to neutral?
Nifty Today’s Analysis
Recap from yesterday: “As an analyst, it is very difficult to predict when the trend will end, but we need to keep looking. For tomorrow, I prefer to continue with the long bias unless we give up the 20853 in the morning session.”
4mts chart link - click here
The opening candle was explosive, in line opening with a strong fall. See the depth in RED - you will understand from the chart. I was eagerly waiting for it to cross that 20850 level today but that did not happen. Let us try to analyze why we had such a bold opening candle move. Both BankNifty and NiftyIT had a similar opening, so it was not an isolated issue. Some players might have sold off their winners to go light into tomorrow’s RBI meet or it could be a long unwinding out of fear that the markets will fall today due to the US market handout.
From there Nifty climbed back to the 20920 level by 11.03 and then the trade was in a small range till the close. From 14.31 to 14.59. At 13.19, 20850 PE was trading at Rs1.95 when the spot was at 20911 - for me, it appeared damn cheap. Nifty made one more attempt - but it went nowhere.
63mts chart link - click here
The last 4 candles of today had perfect “open = close” values. 3 of them were perfect Dojis - look up the textbook for Doji candles, maybe the example quoted there won't match with the real ones of today. Tomorrow’s RBI’s meet @ 10.00 AM is going to be a decider - no level of technical analysis can predict when there is a news flow expected. I wish to maintain my long stance as of now although it's itching to go neutral.
Recap from yesterday: “As an analyst, it is very difficult to predict when the trend will end, but we need to keep looking. For tomorrow, I prefer to continue with the long bias unless we give up the 20853 in the morning session.”
4mts chart link - click here
The opening candle was explosive, in line opening with a strong fall. See the depth in RED - you will understand from the chart. I was eagerly waiting for it to cross that 20850 level today but that did not happen. Let us try to analyze why we had such a bold opening candle move. Both BankNifty and NiftyIT had a similar opening, so it was not an isolated issue. Some players might have sold off their winners to go light into tomorrow’s RBI meet or it could be a long unwinding out of fear that the markets will fall today due to the US market handout.
From there Nifty climbed back to the 20920 level by 11.03 and then the trade was in a small range till the close. From 14.31 to 14.59. At 13.19, 20850 PE was trading at Rs1.95 when the spot was at 20911 - for me, it appeared damn cheap. Nifty made one more attempt - but it went nowhere.
63mts chart link - click here
The last 4 candles of today had perfect “open = close” values. 3 of them were perfect Dojis - look up the textbook for Doji candles, maybe the example quoted there won't match with the real ones of today. Tomorrow’s RBI’s meet @ 10.00 AM is going to be a decider - no level of technical analysis can predict when there is a news flow expected. I wish to maintain my long stance as of now although it's itching to go neutral.
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