Bulls Partying.... But be cautious....

Hi All,

As mentioned in Wednesday’s update, Nifty took resistance near 7840-7880 levels (Wednesday’s high 7846) and fell sharply by almost 2%.

However, its good to see Nifty recovered the losses smartly yesterday and now again trading near the resistances, however by now Nifty has created a higher bottom formation and if closes above 7823-7830 it will also create a higher top formation as well. Sustaining above the said levels Nifty can travel further, but 7880-7900 levels are still going to be crucial any fresh longs, on a conservative side can be initiated above 7880-7900 levels preferably.

On the lower side, 7710-7670-7600-7540 will act as good supports going forward.

Cheers....

Is it a reversal ? ? ?

Hi All,

After breaking the supports near 7760-50, Nifty dipped till almost 7500 levels and saw a real good bounce yesterday and today.

Now its trading near a key resistance of 7840-7880, this bounce can be termed as a reversal only if Nifty sustains above the mentioned levels, and can then travel till 8100 mark.

However, till the time 8200-8300 levels are not convincingly surpassed a major trend is likely to be negative and further lows are possible.

On a safer side traders can watch 7840-7880 levels for short term and 8200-8360 levels for midterm bullishness.

Recent low of 7540 will act as a crucial zone going forward and breaking the same might take Nifty till 7300-7200.

Cheers

Hrishi