Hi All,
Exactly as expected, Nifty took a solid
resistance near the first target of the short term bias of 7610 and my view on
bulls need to be cautious turned out to be right. Today, Nifty even broke 7500
levels, and closed below the same significantly. Today’s fall was more on
account of a sharp bounce in the India Vix index from daily support zone as
mentioned earlier. India Vix bounced back from 16.48% (daily support near
15.50-16.50%) to 18.30% almost.
In this bargain, Nifty has given an Evening
Star Pattern on daily charts, which is a sign of concern, however the pattern didn’t
exactly appear at the end of an uptrend, so the harm may be limited. Evening
Star will get conformed only if Nifty breaks 7400-7380 mark and stay there for
a while. In my earlier post dated 25th Jan 2016, there was a Morning Star (Bullish) pattern on hourly charts and now we have its bearish counterpart on daily....
In a nutshell, the short term bias will
continue to be bullish till the time Nifty trades above 7380-7400 levels, the
medium term bias was negative and will continue to be dovish till the time
Nifty does not surpass the up side hurdles near 7610-7640-7740.
Traders have to keenly keep a track of the globe tonight for tomorrows opening, SGX Nifty will give a hint.....
Cheers ! ! !
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