January 20, 2014

Market outlook

NIFTY is trading in a triangle. Here each rally is smaller than the previous one and so is each correction. This means that as we approach the end of the triangle, trading will increasingly get very tricky and difficult.

Going solely by higher low concept, market trend is still up. This is also supported by option writing stats which indicate that writers are not expecting markets to break 6200 this month. There is still some upside left given the lack of any substantial call writing.

No comments:

Post a Comment

Share this...