Hi All,
As expected on Monday, Nifty did not break
8700 levels and witnessed an initial bounce till 8740-8750 levels, however
could not sustain the same and closed near the day’s low at 8715.
On daily charts Nifty has taken support
near 8700 which is also the Supertrend area, however, on weekly charts Nifty
has given a bearish candle Shooting Star on Friday, and Monday’s gap down
opening also confirms the pattern.
On hourly charts Nifty has created a
Bullish Hammer like pattern, which is a ray of hope for bulls, and that is the
reason 8700-8690 levels will be very crucial to watch out for on closing basis,
Hence going forward, for any substantial up
move Nifty should first surpass the recent high made near 8960-70 levels, else
every rise can be a selling opportunity for short term. Medium term outlook
will be positive until Nifty trades above 8500-8600 levels.
On the lower side supports will be near 8690-8620-8570-8500
and the resistances will be near 8750-8780-8860-8910-8970.
As there are contradicting signals on
different timeframes, market are expected to be choppy, hence trading with proper
stop losses is a must.
Cheers
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