To understand the Nifty structure first you need to understand it’s long-term trend and short-term trend. So, by looking above at the daily chart it is clearly seen that Nifty is in a long-term downtrend, How can we say that? The answer lies in the fact that if index or any stock is making lower high and lower lows (for 5 impulsive waves and 3 corrective waves by definition) than that particular index/stock is in a downtrend.
Now, understand it’s short-term trend, look at the hourly chart and daily chart in conjunction. In hourly chart I have marked the swing points, which clearly states the reversal in Nifty at least for short-term.
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After so many down trending days Nifty opens with gap up shoot and as the day progressed bulls taking the market higher, today is the perfect day for the trend following traders. Even in the 5 minute chart Nifty moving in an uptrend, clearly respecting each swing high and low. Technically, 8500 is the major hurdle for the Nifty but it had surpassed in the first hour and from there Nifty picks up the momentum gear for the rest of the day, it get more fuelled once it crosses the level of 8700.
Now everyone is talking about the past? Who is going to tell us about the future.
Let’s talk about the future, In the coming trading session if Nifty closes above 9050 then it will lead up to 9500 level soon. Second, if it didn’t close above 9050 then it will trade in the wide range of 8000-9000 (here to understand this range you must know about the volatility).
Considering the overall technical structure market is the grip of the bulls, immediate support comes 8500-8700 and meaningful support comes @ 8350-8400 zone, till this level holds we suggest buying on dip opportunity.