The Nifty closed at 5380, almost at a significant support level, lower for the week, as well as lower for the day. Friday was marked with a one sided move, when the Index opened at 5537 (near to previous day's close), made a high at 5565 then it started a decline for the rest of the day. The Index saw a decline of 209 points from its high to the low of the day, closing with a decline of 157 points to it's today open. On the daily chart, TA Insync(55-5) continues its decline, now coming close to the minus 45 level which is an oversold area. But, in weak markets, the indtcaor can simply keep on getting more oversold. Thus, we should expect a relief rally, but we cannot say when this will come about. It is possible that there may be more declines in between now and a rally.
Earlier, we had identified two significant support levels for the Nifty - 5380 and 5130. The Index has reached 5380. We now have to be patient and watch if the market will find support at current levels or continue down towards 5130.
Level:- Looking for support first at 5380 and then at 5130. Resistance comes at 5500.
Summary:- The Market is in an intermediate downtrend. So far, there are no signs of any change of trend.
Traders should take most trades on the short side.
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