Nifty has struggled to cross the 0.5 fib level and for the most part has hovered around the 0.32 fib level. In the same time Dow Jones (US30) has been comfortably above the 0.5 level and is heading higher after retest of the 0.5 level.
This could indicate that Nifty is weaker as compared to Dow and if the Dow starts to fall again, then we would see a even sharper decline in Nifty.
Generally V-shape recoveries have a pretty slim chances of occurring and given the fact that there is no fundamental reason for the markets to go up and no solution to the virus yet, the chances of V-shape recovery go down even further. Thus, the expectation would be for the markets to go down or consolidate for some time before any major move in either direction.
At the time of this writing, as the Dow keeps heading higher, it would be interesting to see where it stands before the start of the Monday open for India NSE. If it keeps going higher, then that could pull the other global markets up too with it but in-case it starts to go down, then that can be an alarm bell.
RSI levels
Nifty: ~50 - Neutral
DOW: ~56 – If it crosses above 60 convincingly then it that can be bullish for sometime but given how much DOW Jones has retraced already, that scenario would be a bit less probable (but then it is the nature of the market to keep trapping people)
Mentality should be to trade the market with tight and trailing STOPLOSS given the kind of pull backs we have observed in the past few sessions after major moves.
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This could indicate that Nifty is weaker as compared to Dow and if the Dow starts to fall again, then we would see a even sharper decline in Nifty.
Generally V-shape recoveries have a pretty slim chances of occurring and given the fact that there is no fundamental reason for the markets to go up and no solution to the virus yet, the chances of V-shape recovery go down even further. Thus, the expectation would be for the markets to go down or consolidate for some time before any major move in either direction.
At the time of this writing, as the Dow keeps heading higher, it would be interesting to see where it stands before the start of the Monday open for India NSE. If it keeps going higher, then that could pull the other global markets up too with it but in-case it starts to go down, then that can be an alarm bell.
RSI levels
Nifty: ~50 - Neutral
DOW: ~56 – If it crosses above 60 convincingly then it that can be bullish for sometime but given how much DOW Jones has retraced already, that scenario would be a bit less probable (but then it is the nature of the market to keep trapping people)
Mentality should be to trade the market with tight and trailing STOPLOSS given the kind of pull backs we have observed in the past few sessions after major moves.
Hit Like!