Nifty Watch:- The Nifty opened at 5496. The Index made a low at 5460 with a 36 point decline, and then moved up to its day high at 5550 and finally closed at 5550 with a gain of 54 points to its open. As we have discussed yesterday about a big move, that move did come about today due to yeterday's NR 7. This 90 point up move rally from its Intraday low to high shows, there is enough bullishness in the market. However, all markets correct. The Nifty has retraced 100% of its down move that started from 5550. It is quite possible that the market may now face resistance at current levels. A pullback could see a correction of 100 to 125 points.
Trend:- The short term trend is up. The Intermediate trend remains down, with the Nifty trading below its 200 days and 50 days moving average but these averages are coming closer with every advance. The 200 DMA is at 4637 therefore, it is now within strking distance of the current close. The average should act as resistance, at least initially. There will be many funds that are probably wanting to sell out, having missed the previous opportunity. These funds may step in to liquidate. If the Nifty continues to move up, crossing the 200 DMA, then we will have a strong buy signal. Let us wait and see. Meanwhile, buy on dips. TA Insync(55-5) is now above the level of -45 and still facing up. This shows us that the up move continues for few days more.
Level:- Looking for support at 5460. Major resistance comes at 5550. Today 4 times Nifty touches this level but could not able to break it and at last nifty closed at this level. So this is a significant resistance for nifty.
Summary:- Today Nifty recovered all the losses of previous downside decline which started from 5550 to 5175. Traders should take partial profit in their long position. 5550 is a resistance for the nifty. If Nifty strongly breaks it tomorrow then we can see a new high also.
No comments:
Post a Comment