Wednesday, February 17, 2016

And the battle is on again..... ! ! !

Hi All,

As expected yesterday, after creating a bearish Belt Hold pattern on hourly charts, Nifty could not cross 7210 mark and tanked sharply till 7050-7030 levels. And the Morning Star Pattern could not be confirmed.

On daily charts Nifty the RSI has taken resistance near 40 mark which is a bearish sign, however as mentioned yesterday a Hammer on daily charts can offer a respite for bulls so the low of the Hammer should be broken on closing basis to change the bias, however on account of lack of further bullish confirmation, buy decline strategy should only be applied after a confirmation on hourly charts. Those who bought yesterday after the market decline can think of booking profits at the opening today as SGX Nifty is already up by around 40 points. Still risky traders can take a chance of buying on dips with final supports below 6850...

Going forward, 7140-7175-7210 will act as strong resistances for Nifty today where as 7000-6945-6910 will act as supports.

The India Vix, though dropped sharply in the first half of the trading session, it bounced back sharply from a demand area near 17%, as expected traders need to take a look at the same as key important events are lined up for this month end as suggested earlier.


Cheers

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