Market Status Changed to Rally Attempt

- Tuesday’s session was considered as the day one of a Rally Attempt as the market closed in positive territory. And Nifty managed to stay above Tuesday’s low of 7,511 yesterday as well as today.

Let's see why we changed the market status to Rally Attempt ?

- Today’s action qualifies as day three of an attempted rally. So, we are changing the market status to a Rally Attempt from a Downtrend.

- From here, we would prefer to see a follow-through day before shifting the market to a Confirmed Uptrend. Should this occur, the focus will be on ideas that show the best relative strength with good accumulation. Stocks that recover the quickest tend to lead the next run.

-On the flip side, if Nifty breaches its recent low of 7,511, the market will be moved back to a Downtrend.

-It is important to understand that the market selloff has been so sharp and deep. One should not get aggressive and start investing. Instead, wait for the market to show some strength. The technical damage is severe and might take some time to repair the damage.