Markets saw a last hour rally after a rangebound and a bit frustrating move through the day. Now looking at the SGX Nifty and global markets if seems we may gap-up tomorrow and move towards the first target, which ends somewhere in the 17500-17600 zone. However, the moot question is about the overall direction.
Scenario 1: The markets have made a bottom at 15600 and some kind of new uptrend has started. if that is case we might see a rapid rise in the markets towards 18000 levels and eventually towards new highs
Scenario 2: One leg of correction is completed from 18600 - 15600 and we are seeing a corrective rise. Depending on the what shape this pattern takes, we can see a rise towards anywhere from 17600-700 to 18600 before starting the third leg of correction.
It will become clear only as the market move unfolds. The correction pattern is complex, so we have to wait for the puzzle to unfold. Looking at the global economic and political scenario, I am gravitated towards believing that we are not out of the woods yet and markets may continue to trade in this corrective pattern for some time. But ultimately it is the market that is going to decide where it wants to go.
Scenario 1: The markets have made a bottom at 15600 and some kind of new uptrend has started. if that is case we might see a rapid rise in the markets towards 18000 levels and eventually towards new highs
Scenario 2: One leg of correction is completed from 18600 - 15600 and we are seeing a corrective rise. Depending on the what shape this pattern takes, we can see a rise towards anywhere from 17600-700 to 18600 before starting the third leg of correction.
It will become clear only as the market move unfolds. The correction pattern is complex, so we have to wait for the puzzle to unfold. Looking at the global economic and political scenario, I am gravitated towards believing that we are not out of the woods yet and markets may continue to trade in this corrective pattern for some time. But ultimately it is the market that is going to decide where it wants to go.