Hi All,
Nifty created an equal top on daily charts
near 7585 and created a M (Double Top formation), a bearish formation, hence
surpassing the area of 7580-7600-7640 becomes even more crucial for markets now
in order to continue its up move.
Yesterday, we booked a nice profit in Nifty
short trade as it was trading near a key resistance of 7600, however today we
shall wait and watch, as even though the Nifty has given a Double Top
formation, the same will only be confirmed below 7400 (the swing low between
the two tops).
So, bottom line, 7400 on the lower side is
a crucial level, however the same has been used now for quite a few times which
might mean that the support is weaker than what it was earlier, and on the
higher side 7580-7600-7640 will hold the key and bulls need to surpass it for
the up move to continue.
I shall update the view after first hour of
trade, if required and then we can think of taking a possible trade if any.
Cheers
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