Hi All,
Nifty took support near the
informed level of 6950-60, and bounced back in opening trades, currently up by
almost 80 points.
However, due to lack of an
concrete evidence yet, the same cannot be called as reversal and the rise can
be used as selling opportunity with strict stop losses.
On the higher side 7095-7125
will be the crucial levels to watch out for and the bears can again come back
with force near these levels.
On the lower side 7000-6950 will
act as good supports and below that the last ray of hopes for bulls will be
6850 levels.
The only good sign for markets
is that on hourly charts Nifty has created the Last Engulf Pattern, which was
very effective on daily charts in recent past and proved to be at least a short
term reversal, however it being on the hourly charts will have truncated
benefits for bulls.
Since it’s a professional gap up
opening, yesterday’s low will act as a crucial support and risky traders can
think of buying index with stop loss below it, preferably on declines.
Traders are expected to trade
cautious, as the next trading session, i.e. Monday is the D-Day when the Union
Budget will be announced.
Will update on levels after the
first hour of trading....
Cheers
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