Update - 27th March 3.30 PM
As posted on the What's App broadcast in the morning, the news of rate cut by RBI has already been discounted by the markets and hence, with Buy The Rumpor, Sell the Fact analogy, a fall or a correction was expected after the news broke out today after the RBI announcement...
the gap up opening in the morning was given up immediately after the news, as the correction was of more than 500 points as the markets sold off from the highs of 9038 levels till 8522, though settled near 8674, marginally up by 13 points.
On hourly charts... Though. Nifty is kind of making a Head and Shoulder (bearish) patter, the RSI shows a Bullish hidden divergence. Also there would be hourly (closing basis) support near 8330, which is the Supertrend.
So in a nutshell, bias would remain bullish, unless Nifty holds to the trendline drawn on the chart above (8600-40), below which 8380-8330(Supertrend)-8270 can be good supports. If the Head and Shoulders materializes, the potential target could be near 8k mark...
However, hidden divergence means, above 8700 and 9040, Nifty can scale further highs near the resistances shown in the chart below...
Trade accordingly....
Cheers, have a great weekend...
Hrishi
As posted on the What's App broadcast in the morning, the news of rate cut by RBI has already been discounted by the markets and hence, with Buy The Rumpor, Sell the Fact analogy, a fall or a correction was expected after the news broke out today after the RBI announcement...
the gap up opening in the morning was given up immediately after the news, as the correction was of more than 500 points as the markets sold off from the highs of 9038 levels till 8522, though settled near 8674, marginally up by 13 points.
On hourly charts... Though. Nifty is kind of making a Head and Shoulder (bearish) patter, the RSI shows a Bullish hidden divergence. Also there would be hourly (closing basis) support near 8330, which is the Supertrend.
So in a nutshell, bias would remain bullish, unless Nifty holds to the trendline drawn on the chart above (8600-40), below which 8380-8330(Supertrend)-8270 can be good supports. If the Head and Shoulders materializes, the potential target could be near 8k mark...
However, hidden divergence means, above 8700 and 9040, Nifty can scale further highs near the resistances shown in the chart below...
Trade accordingly....
Cheers, have a great weekend...
Hrishi
