Hi All,
Hope you all are doing fine.
Nifty after the dream run for almost few months now, has topped near 11800 and corrected fairly to near 11k levels today.
There are some bullish observations which suggest that the correction might be over
1. Nifty completed around 23.6% retracement of the recent rally from 8850 to 11800, if not sustained here the next critical support can be near 10650 (38.2% retracement) - 11880 (next swing low of August)
2. Nifty, though has broken the lows of 14th August, still managed to close above it for yesterday and today too.
3. Most importantly on hourly charts today, Nifty has given a Bullish separating Lines pattern, which is a very reversal signal, the same kind of pattern was seen before on 9th Sept, after which Nifty rallied from the lows of 11200 to 11600
4. Also, on hourly charts, Nifty has given a bullish RSI Divergence too, which will be confirmed above the recent high of 11250-70
So, a crucial support, is likely to be found near 11k whereas on the higher side, 11260-70 is a crucial resistance to watch, above which we can expect Nifty to travel till 11330-11390-11540-11620-11800.
On the lower side, supports would be 11000-11030, below that 10970-10870 would be crucial.
Plan of action -
Though the overall trend seems to be down, with lower top lower bottom, since the price are trading near crucial supports, aggressive traders can take bullish positions (if tomorrows opening is near to the today's close) with stop loss below 11000-10970.
On a safer side, one can go long only if prices go above 11270
The targets to expect would be the resistances mentioned above. Do trade with proper risk management and take trades with a favorable Risk : Reward.
Will update you all on the What App broadcast as and when required...
Cheers
Hrishi
