Nifty Watch:- One more Monday, the first day of the week - the Nifty opened at 5340 approx then rallied throughout the day to close at 5450 with big intraday gains. After today's gains, the Index has added almost 280 points from Friday's intraday low to Monday's close. This means about 280 points in one trading day - momentum that is not likely to be sustained. So, what is the outlook?
1. After almost seven weeks of declines, the Nifty is oversold, ready for a correction on the upside. The current upmove is probably that correction.
2. Time Correction: The up move may last anywhere between three to four weeks, in terms of time.
3. Price Correction: markets have fallen by 1050 points approx. A correction can see the Nifty rally by 400 to 550 points, giving targets of 5580 to 5730 approx. These are only estimates.
4. A two day rally has seen gains of 280 points. We can safely assume that markets will consolidate for a few days before resuming their advance. It is also possible that the Nifty may remain in a trading range fortwo or three weeks, thus completing the time correction, without hitting the price targets.
Level:- Looking for support first at 5410 and then at 5380.. The resistance comes at 5460, then 5500.
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