Bottom Line: Nifty continued to move in a
narrow range. Prices shall continue to move this way atleast for 1 to 2 weeks
before any directional move…
Nifty Daily chart:
Nifty 60 mins chart:
Wave Analysis:
We mentioned in previous update, “In short, the bias is positive
over short term as long as 5210 is intact on downside. The immediate resistance
is now at 5250 – 5270 levels.”
Nifty made a low of 5209.95 and bounced back from there. The
lower level of 5210 has been very accurate. Prices had a minor gap down opening
and failed to enter into positive territory throughout the day. Also as shown
on 60 mins chart prices have moved out of the channel. Given the weakness in
global markets Nifty can have a gap down opening around 5200 levels. It will be
important to observe if prices can defend the support of 5190 level. A move
below that will indicate that the b of B has started which will last for around
5 days. And can take prices towards 5110 levels.
Indian markets can be challenging for trend followers over
short term. It is important not to lose patience and the bigger picture which
is still bullish as of now and once this corrective wave ii ends next leg on
upside towards 5600 can start. However it is important that this wave does not
take prices below 5000 level.
In short, a move below 5190 can take prices towards 5110
levels. Any move above 5230 will take it towards 5260 – 5270.
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