Nifty trend / Nifty prediction 14th May 19
Nifty trend today was seen sharply lower once again and has been moving perfectly in line with our Nifty prediction. Regular readers of this website are well aware that we have been bearish since the levels of 11700-11800 and we have been consistently saying that there are too many problems in the economy and that from a fundamental perspective we do not see how the Nifty will sustain at higher levels and hence we have been trading on the short side since the level of 11700 and used every bounce to short the Nifty and we do not see that changing in the near term. Sure there will be pullbacks from time to time we are not suggesting that this market will keep falling everyday no we are not suggesting that but as of now the market is not in the buying zone from a traders perspective nor is it a buying zone from an investors perspective so keep in mind that yes bounce backs will come from time to time and will end up forming a lower top and till the time lower top and lower bottom formation is not violated till that point in time forget buying. Even from a technical perspective, we had been warning that there are too many divergences at play and we do not see Nifty sustaining higher around the levels of 11700-11800. Our initial targets for the downside are —– and although the trend is down for the moment we do not see any significant bounce back coming in the Nifty till the level of —- is not tested. Overall based on our trend analysis and Nifty prediction, there will be pullback however, those pullbacks must be used to sell or exit portfolio longs. It will be prudent not to try to catch a falling knife at least at the moment.
From a technical perspective, we see near term resistance for Nifty around 11370 spot levels till this area is not breached with volume we do not see any major pullback coming. We once again are saying that both fundamental factors and technical factors do not favor buying side for now. Be with the trend.
Good trading to you!