AS WE SAY STOCK MARKET IS A REPRESENTATION OF COLLECTIVE PSYCHOLOGY OF TRADERS MIND, BUT MANY TIME WE THINK THAT WHY MARKET IS NOT BEHAVING AS PER OUR MIND???
THE SIMPLE ANSWER IS AS I SAID COLLECTIVE PSYCHOLOGY OF TRADERS, BUT IT ALSO DEPEND ON THE CAPACITY OR THE POWER OF PARTICULAR TRADER, LIKE FOR EXAMPLE
10 TRADERS HAVING A BUYING POWER OF 1 CR. AND 1000 TRADERS HAVING A BUYING POWER OF JUST 10 LAC, SO AT THIS POINT MARKET MAY TRY TO BEHAVE ON THE PSYCHOLOGY OF THOSE TRADERS HAVE GOOD CAPACITY FOR TRADING OR INVESTMENT.
SO WHAT I NEED TO EXPLAIN HERE IS, IF YOU LOOKING TO FIND DIRECTION IN MARKET THEN JUST DON’T DO WHAT MAJORITY OF PEOPLE ARE DOING THERE, ONLY TRY TO FIND OUT WHICH SIDE IS MAJORITY POSITIONS ARE BUILD UP, AND THIS CAN GIVE YOU A HIND OF PROPER DIRECTION.
NEXT WEEK THERE ARE ONLY THREE TRADING SESSION, TO ALL TRADERS NEED TO BE CAREFUL WITH THEIR POSITION BUILD UP, DON’T BUILD UP FRESH POSITION AT UPPER LEVELS NOW, AS WE SEE SOME CORRECTION IN OVERSEA MARKETS ALSO, SO OUR MARKET CAN ALSO GIVE SOME CORRECTION SO BUY NEAR SUPPORT LEVELS ONLY.
Just see last week only we inform that 6650 is key level on nifty spot chart, as per that in last week it able to made 6650.40 and given a sharp bounce till new life time high level of 6820 almost.
As per the current chart development we see that, last week it has given a “MORNING STAR” candle with “DOJI” candlestick pattern on chart, this lead to up move till fresh level, after that recently it made “EVENING STAR” candlestick pattern.
As of now, at current stage it has developed “NEGATIVE DIVERGENCE” at upper level now, and there is also a “EVENING STAR” candlestick pattern on chart.
Rsi able to show a weakness now, but price still taking support at trendline.
So overall consideration for this week is, if market able to move below 6650 level on closing basis then only all above mention patterns will give confirmation of bearishness in market which can lead for a good fall or correction.
So levels to consider for next week is 6700-6650 are support level range below this range on closing basis we can see 6580-6500-6450 levels.
If it able to take support in a range of 6700-6650 level then again we can expect a reverse move from here till 6800-6850-6950-7050 level also in coming weeks.