Gravestone . . . .

Hi All,

As expected, though Nifty opened slightly crosses the Monday’s high of 8215 yesterday, it could not cross the Window resistance of 8209-8217-20 mark and traded lower thereafter.

After a Star candle followed by a Bearish engulf, yesterday, Nifty showed a sort of Gravestone Doji Candle, yet another bearish pattern on daily charts near gap resistance, which again suggest the ongoing pessimism in the market participants.

Which further confirms my view that any upside is possible only and only after a close above 8220 levels. Nifty can even witness a selling if it breaks 8100-8130 area.

Levels to watch out for intraday are –

Supports – 8130-8100-8060-8000-7940-7850

Resistances -  8185-8210-8230-8260-8340

Cheers                

Engulfing Bear . . .

Hi All,

After a indecisive candle near the Downward Gap resistance day before, yesterday bears took charge from bulls and closed the day with an Engulfing Bear candle.... Also, the red candle yesterday occurred with a significantly huge volume. Even the trade happened with a Candle divergence on RSI. All of this suggest that bears have an upper hand but if and only if Nifty goes below 8130-8100 levels in today’s trade.

As expected nifty did not break 8140-30 levels mentioned as supports in yesterday’s post and markets traded with a tight range of around 50-60 points after opening higher above 8210 levels.

Going forward, Nifty can witness a selling pressure if it breaches the 8100-8130 mark, n the higher side the resistance is pegged at 8210-8230 levels.

Levels to watch out for intraday are –

Supports – 8130-8100-8060-8000-7940-7850

Resistances -  8185-8210-8230-8260-8340

Cheers                

A Star near a Window.....

Hi All,

As expected, Nifty rallied sharply after the said levels and is marching towards resistance area of a Window (A Gap Down Opening) near 8209-8220.....

Also, Nifty yesterday created a small Star Candle which shows a lot of indecisiveness near the gap, showing a sign of concern for bulls going ahead. For the current rally to continue upward, Nifty should ideally close above the gap, i.e. 8217-8220.....

Nifty is overbought as per the oscillators on daily and weekly chart which suggests at least a pause / break in the current up run.

Traders with longs, are suggested to hold tight trailing stop losses, and the strategy for markets will be buy on dips with stop losses below supports.

Levels to watch out for intraday are –

Supports – 8140-8100-8060-8000-7940-7850

Resistances -  8230-8260-8340

Cheers