Nifty – 17 July 2017

Our earlier trading short-entry obviously did not pan out. The market has resumed the earlier uptrend, albeit without too much conviction. The biggest problem, we think. is the lack of resistance and reliable projection levels. All the main pivots have been surpassed and the index is driving blind… With longer term divergence ever present we see the market as way too risky to buy at current levels, even though the outlook is not outright bearish. There is just too much risk.

The only thing that remains is to wait for the market to enter a healthy correction to blow of some steam and set decent pivots for favourable risk/reward ratio’s. Any currently existing longs can be maintained with trailing stops around 9715 up to 9660.

Beware of complacency (and low volatility) in the ever rising markets. These markets look easy to invest in, but are actually the most difficult and dangerous of all.

  • Primary trend: neutral/positive late phase
  • Outlook: long-term exhaustion
  • Strategy: hold with trailing stops
  • Support: 9715 / 9660 /  9250
  • Resistance: ?

Daily chart NSE Nifty