Hi All,
Exactly as expected, Nifty rallied sharply after breaching the resistance of 7030-7050 mark, and almost came near to the 7200 mark (High of 7182).
No going forward, 7210-7220 levels will be
crucial to watch out for as Nifty has been making a look alike pattern of
Morning star on the daily charts and crossing 7220 will confirm the pattern.
We also have to remember that Nifty has
already created a Hammer Pattern earlier on 12th Feb, which suggest
that Nifty will trade with a positive bias if t sustains above 7220 levels.
The only concern is that the India Vix,
i.e. the Volatility Index which fell by almost 10% yesterday is trading near a
daily support zone and a bounce in volatility usually means a fall in Nifty. Volatility is currently @
22.38% and has a support of 21.40-21.50%
In a nutshell, thanks to the Hammer and a
look alike Morning Star on Daily charts suggest that Nifty should trade with a
bullish bias at least until 7270-7300-7330 levels and unless it creates a
bearish pattern on hourly charts we can apply Buy on Dips strategy.
Levels to watch out for –
Supports – 7150-7120-7050-6950-6900-6850-60
Resistances – 7190-7220-7260-7280-7330-7400
Traders are advised to trade with cautious
and with strict stop losses as high volatility can be expected in markets owing
to the key events this month.
Cheers
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