Nifty Watch:- Today Nifty opened at 5495 with a gap down of 60 points to yesterday close. Nifty quickly made a low at 5482 and then move up to its day high at 5597 with an increase of 115 points to its day low. These up and down movements continued for the rest of the day and Nifty finally closed at 5544 with an increase of 49 points to its open and near yesterday’s close.Overall, we are in a process of consolidation. This consolidation may hold for few days more. The trend is up, therefore, within this consolidation; look for dips only to buy.
Trend:- The short term trend is up. The Intermediate trend remains down, with the Nifty trading below its 200 days (5643) and 50 days (5661) moving average. Both the averages are converging in the 5600 to 5700 area. This zone should provide resistance for some time. TA Insync(55-5) is above the level of -45 and moving up. This indicator is suggesting that nifty uptrend is intact. The indicator is now at 7.10, which is about mid way between its low and +45, the overbought zone. This midway position suggests that there is more upside, but within the next week or so, the indicator will begin to reach the overbought zone. A dip will provide an opportunity to enter this uptrend. After some days, the trend will become mature and further buying may not be possible.
Level:- Looking for support at 5450 . Resistance comes at 5700.
Summary:- We are in contraction phase so nifty will take some time for consolidation and then follow up with a trending move. Since we are in an uptrend, we should expect the next move to be up.
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