It was the day of indecisiveness!
Nifty is trapped in a tight range between the crucial levels of 11180-11300.
Here are my observations from the daily chart of Nifty…
- Nifty has printed a Doji, an inside day, and the narrowest range of the last 9 days near the crucial resistance of 11300. This means that we are going to witness a range expansion in a day or two, most likely on the downside.
- In my experience, the markets can’t remain in an indecisive state for long and soon will find its way probably on the downside, as it’s still a counter-rally within an intermediate downtrend. A break below 11180 will confirm.
- The more time Nifty will take to break above 11300, the higher is the risk of tumbling down. The bulls will have to push the markets through 11300 decisively for the change of trend.
Nifty Bank has formed a long-legged Doji at the 100 Day Average. The break above 21811 can only change its direction. Till then, we are still looking at 19500.
The outlook remains cautious!
There are no signals and positions as per my Swing Trading Strategy. The strategy gets only active when there’s an atmosphere of excessive fear or greed! The rest of the time, we rest!
Have a great start of October!
P.S:
The September month got over and we are entering the notorious and volatile month of October. On Friday, we’ll look at the Big Picture of the major markets around the world with Monthly charts! So, watch out for this space day after tomorrow!
*** This is not an investment advice and only for information and educational purposes.
