Trend:- Today’s market shows us an intermediate downtrend. Market is trading below its 200 days and 50 days moving average. We are regularly seeing a pattern of lower highs, lower lows.
TA Insync(55-5) has gone below minus 45, continued to oversold. In a strong downtrend, the oversold condition can persist for some days as market continues falling. But, sooner or later, we can expect a relief rally / consolidation.
Level:- Looking for support first 5130. Minor support may come at 5280. The resistance comes at 5500. Summary:- Nifty breaks its support at 5380 in a bearish market. Fresh short positions should be taken on rallies or through the use of put spreads (buy 5300 put and sell 5100 put). It is also possible for the Nifty to go below 5000 in the month of February, if world markets start going down.
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