Thursday, February 4, 2016

Star Wars..... Ears Win . . .! ! ! !

Hi All,

The battle of Bulls and Bears with Morning & Evening stars, the bears won yesterday and as per our expectation, after breaking the earlier resistance and now support of 7500, Nifty tanked by almost 150 points to create a low of 7350 odd levels.

Near the bottom of 7350, Nifty completed 71% retracement of the entire rise from 7240 to 7600 levels and after a strong gap up opening today, there is a small respite for bulls and 7350 will now act as a support going forward...

Levels to watch out for intraday are

Supports – 7400-7350-7320-7250-7230-7200
Resistances – 7435-7460-7510-7580-7610-7640

In a nutshell, the intraday bias for the Nifty will be bearish till the time 7460-65 levels are not breached.(as the key support of 7400 is broken and on account of Evening Star Pattern on daily charts)

Traders are advised to trade cautiously as the India Vix index has bounced back sharply yet again from the lows of 17.30% and now trades near 18.1%


Cheers

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