Hi All,
As expected in the previous #MarketUpdate post, Nifty, after breaking out of the triangle rallied till 10900 levels, but failed to cross the important mark of 10930-10950, which was the weekly significant top.
Markets were giving mixed signals leading to the indecisive bias, and it now continued with one more signal on daily charts, a Shooting Star Candlestick Chat pattern, which has bearish implications. So if Nifty breaks and sustains below the supports of 10760-10750, it might drift down quickly to next near term supports near 10690-10700, and breaking this level will take Nifty towards 10550 mark. Even the upward trend line for the probable Ascending Triangle would be near 10650-10670, hence that area becomes very crucial to decide the upcoming mood.
For Bulls, there is an upward gap on daily charts from 10698 to 10709, which should act as a strong support zone on closing basis, a close below that level may lead Nifty to lower levels mentioned above.
Plan of action will be short below the supports mentioned, with targets of aforesaid supports with a stoploss above 10950...
Please see the chart below for reference...
Cheers...
Hrishi
As expected in the previous #MarketUpdate post, Nifty, after breaking out of the triangle rallied till 10900 levels, but failed to cross the important mark of 10930-10950, which was the weekly significant top.
Markets were giving mixed signals leading to the indecisive bias, and it now continued with one more signal on daily charts, a Shooting Star Candlestick Chat pattern, which has bearish implications. So if Nifty breaks and sustains below the supports of 10760-10750, it might drift down quickly to next near term supports near 10690-10700, and breaking this level will take Nifty towards 10550 mark. Even the upward trend line for the probable Ascending Triangle would be near 10650-10670, hence that area becomes very crucial to decide the upcoming mood.
For Bulls, there is an upward gap on daily charts from 10698 to 10709, which should act as a strong support zone on closing basis, a close below that level may lead Nifty to lower levels mentioned above.
Plan of action will be short below the supports mentioned, with targets of aforesaid supports with a stoploss above 10950...
Please see the chart below for reference...
Cheers...
Hrishi
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