Hope you all had a good trading session. I am back with my charts and hope to get a quick analysis done. Let’s Begin :
The action in the Nifty today, matched the action on Friday. A Higher open, inability to move higher, then sellers take over, and a ‘ buy the dip’ at a crucial MP point.
For the bulls, one can argue that we moved higher on an end-of-day basis. One can also argue that the action once again was over the POC and VAH from the last day. If memory serves me right, then I remember only 1 day that the market visited VAL from Budget day. Overall very bullish action.
For the bears, I will argue that the bulls have not been able to take the price higher than the opening print by more than 15 points for 2 successive days now.Again the sellers today were able to bring the market down by about 40 points again without much resistance from the buyers.
I am not trying to take both sides here, but trying my best to be objective in my analysis so that we are ahead of the move which is to unfold.
To me, we are definitely seeing buying exhaustion with signs of the sellers getting aggressive.
But I will have to see more of the above statement tomorrow and in the days to come…
…which means that I will be with the buyers as long as price holds up above VAH, will be neutral in the value area and be a seller below VAL.
The purple lines are my decider lines tomorrow.
I have included a chart of Reliance today- a general of this army- which closed below value today.