Friday, February 26, 2016

Play Safe....

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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