Nifty Watch:- On Monday, the first day of the week, the Nifty opened at 5400. Right from the start, the Nifty showed some efforts for a base building process. The Index moved in a narrow range, probably getting ready for a big move which ultimately did not come about today. In the process, the Index made an NR7 today – the narrowest range in seven days. We can expect a breakout / breakdown tomorrow. The Nifty closed at 5406 with a high at 5444 and a low at 5378. The good news is that the Nifty finds its support at 5380. We have to wait and watch to find out if the support holds..
Trend:- Today’s market shows us an intermediate downtrend. Market is trading below its 200 days and 50 days moving average. TA Insync(55-5) is now oversold. It is possible for this oversold condition to persist with the Index making new lows. But, sooner or later, we can expect a relief rally / consolidation.
Level:- Looking for support first at 5380 and then at 5130. The resistance comes at 5460, then 5500. Summary:- Nifty finds a strong support at 5380 in a bearish market. The trading range of the nifty is 5380 to 5500. If it breaks below 5380 then the decline will continue and a strong breakout at 5500 may see a big rally also.
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