Tuesday, March 1, 2016

Roller Coaster Ride over....

Hi All,

In a roller coaster ride yesterday, Nifty went down by almost 200 points, however, as expected it took a solid support near 6800-6850 levels and bounced back sharply and also went in to positive territory, however managed to close the crucial day of Budget negative by 42 points at 6987....

Nifty gave a sort of a bullish candle yesterday however it does not have any recognizable pattern on daily charts, on hourly charts though, Nifty managed to give a Hammer pattern hence yesterday’s low of 6825 will act as crucial support.

On the lower side 6950-6920-6900-6870-6820 will act as supports for the markets, where as on the upside, 7100-7150-7180-7260 will act as resistances.

After the completion of the event yesterday, the Volatility is expected to cool off a bit, and can find supports near 17% (Currently trading at 20.16%)

For any meaningful upside, Nifty has to first cross the high of yesterday i.e. 7095-7100 convincingly.

There were news that RBI might come out with a surprise rate cut in couple of days, and if that happens can be a positive news for the markets.

On the Daily line chart Nifty has not yet given a lower close, and a close below 6970 will have negative implications for markets with final supports near 6800-6820 levels.


Cheers

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