Market Breadth & Situational Awareness of Nifty: Thursday 30th January 2025

   

                       Market Breadth & Situational Awareness of Nifty: Thursday 30th January 2025

Nifty today closed strong with a positive 0.37%.

The downtrend is still intact as per the price chart.

Situational awareness or Market environment data still says that Nifty is in a downtrend.

Strength and direction towards the right is still in the red. This shows that Indian market as a whole or not just Nifty 50 stocks lacks strength. Moreover, the direction is also not present to trade.

Medium and Positional term trends are also negative.

High data stands at -1.019 suggesting new highs are not being made. 

Short-term direction is positive. The short-term trend number has increased, suggesting stocks move up in the short term (2-3 days). Thurst in yellow indicates that stocks haven't shown the thrust today but looking at yesterday that might be a small pause. 

Tomorrow is Friday and after that we have Budget. I personally don't carry any trading position to the event date. Short-term trades would be squared off tomorrow.

To summarise :

Short term and thrust positive - Short-term trades can be taken as per strict risk management as long term environment is still bearish. We are just looking for a small up thrust for 2-3 days (Holding period 2-3 days)

Strenght + direction + highs + Medium trend - Swing trades with holding of week should be Avoided.

Strenght + direction + highs + Positional trend - Positional trades spanning between few weeks to a month should be Avoided.