New year 2017 has been good for traders until now and even on monthly chart gave strong reversal for investors. But the rally couldnt be without any hiccups and we are going to have one. 8530-8980 was my range mentioned in last post , but couldnt touch the high of the range but can get closer to downside range.
As we could notice in the chart, last 7 sessions have been sign of losing momentum. We got 7 consecutive red candles which means markets closed below the level where it open for the day which clearly signs that traders are selling on any positive opening fearing markets to fall. This fear finally turned to reality today as Nifty closed below 4 day SMA and 9 day SMA after 36 straight sessions of positive close over the same. Even indicators such as RSI and MACD has given negative crossover to confirm bearish signs from price and MA crossover.
So now to sum up, still the charts for long term are positive but we may witness some profit booking before expiry which may take support at 8652/8600/8580.
Strategy for Traders: Square-off Longs and short with stop loss of 8860
Strategy for Investors: Buy on each dip with stop loss of 8410 for investors.