Hello Everyone,
Nifty finally ended the day with a gain of 52
points and clearly a battle won by the bulls.
In earlier posts I kept on mentioning that
the bias will remain bearish till such time we have a CONCRETE CONFIRMATION on
charts, with today’s pullback, though we can see a confirmation with a Hammer
on daily charts, on a conservative basis, would like to wait for one more day
due to the concerns of volumes and market breadth as explained in the earlier
posts.
So, what can we expect?
First of all, any near term upside is
possible only above 7610-7650 mark and that will be the zone to watch out for
tomorrow onwards. After surpassing these levels Nifty may face resistance near gap
down openings i.e. supply in the range of 7670-7730.... A close above 7730
levels can take Nifty to higher till 7830-7980....
I believe the first confirmation may come
with a close above 7600-7610 levels on hourly charts where Nifty will face a
Supertrend resistance....
On the lower side 7507-7420-7400 will
continue to act as supports going forward.
In a nutshell, after today’s strong performance by bulls, one thing is
certain that if the 7610-7640 levels are crossed with conviction, we can expect
at least a bounce, one other good sign is that in this entire fall, the Nifty
did not close below 7500 levels any time, which was the level we were discussing
since long back. A close below the psychological mark of 7500 may trigger a
downfall in Nifty again.
Cheers
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