The falling markets worldwide had a negative effect on Indian Stock Markets yesterday which opened with a wide downward gap and closed in the negative. Overall the Indian markets have been falling since quite some time.
Today Indian Stock Market is likely to open again with a negative bias with a gap down but since the markets are quite oversold, a bounce relief rally can come on basis of some positive trigger but we will have to wait for intraday technical levels to confirm it.
To judge the long term trend of the market, we can either check the technical level of Nifty/ Bank Nifty or see the number of cash stocks which are above or below important support levels.
Level wise Nifty has been in downtrend since 8th July 2019 and we will consider it to come in buy only when it closes above a certain level. (the daily level of Nifty is sent with the message in the evening)
The broader trend of cash stocks is seen by the percentage number of stocks which are above important support levels. Currently they are just 9% of stocks which are above support and 91% stocks are below support. When stocks above support are below 50% we consider cash stocks to be in downtrend and above 50% we consider cash stocks to be in uptrend. Just for your information the cash stocks percentage has been below 50% for majority of the time in last 4 months. This percentage when comes below 10%, we consider the markets as quite oversold and when it is above 90% as quite overbought. Here we also have to see the broad trend of US markets also.
We are explaining the above narration of Nifty trend and percentage for an easy understanding for our trial clients who have registered for a free trial of paper trading in Bank Nifty for a month as we will be sending this message daily in the evening to them on whatsapp.
Today Indian Stock Market is likely to open again with a negative bias with a gap down but since the markets are quite oversold, a bounce relief rally can come on basis of some positive trigger but we will have to wait for intraday technical levels to confirm it.
To judge the long term trend of the market, we can either check the technical level of Nifty/ Bank Nifty or see the number of cash stocks which are above or below important support levels.
Level wise Nifty has been in downtrend since 8th July 2019 and we will consider it to come in buy only when it closes above a certain level. (the daily level of Nifty is sent with the message in the evening)
The broader trend of cash stocks is seen by the percentage number of stocks which are above important support levels. Currently they are just 9% of stocks which are above support and 91% stocks are below support. When stocks above support are below 50% we consider cash stocks to be in downtrend and above 50% we consider cash stocks to be in uptrend. Just for your information the cash stocks percentage has been below 50% for majority of the time in last 4 months. This percentage when comes below 10%, we consider the markets as quite oversold and when it is above 90% as quite overbought. Here we also have to see the broad trend of US markets also.
We are explaining the above narration of Nifty trend and percentage for an easy understanding for our trial clients who have registered for a free trial of paper trading in Bank Nifty for a month as we will be sending this message daily in the evening to them on whatsapp.
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