Happy New Year 2018
This is how Nifty has started the year 2018
If we look at the last 3-month chart - it looks like Nifty pulling back from the higher end of the range
Then the next question - If it's pulling back - then where is the support? This is what Nifty daily chart looks as of now
The Big picture suggests Nifty has a solid support at Moving average which as of now stands at 10130
Science of Stock Price Action: When a market runs up too much in any year, then it takes a long rest to let fundamentals catch-up with it before it resumes another move up.
The Big question then becomes - Where is the base of the market where it will take rest before resuming upmove. The Chart offers only a hint at this point of time and that number appears to be 9700
What does this mean?
The theory says that Nifty will test the patience of bulls in near future with 9700 as the base. Do I know this for sure? Absolutely not. The Market can continue to surprise us by keep moving up. All I am saying - What charts and history tell us.
Never have any hard opinion on the market. Because it's your hard opinion that makes you do stupid things when the market does not follow your script.
— Deepak Singh (@smarket) January 1, 2018
Nobody knows what market will do in future.
Science of Stock Price Action
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers