Nifty spot has successfully tested its flip resistance near
8000 and witnessed nice selling pressure after hitting intra-day high of 7978.45
and settled at 7912.05. Prices are facing resistance near 200 days SMA and 50%
correction level of entire bearish attempt from top of 9119.20 to low of
6825.80. Nifty has been witnessing a consolidation in a small range from last 3
days that marks possibility of a bearish breakaway candlestick pattern which
consists 5 candlesticks. We need 1 more candle to confirm completion of this
pattern. MACD has been staying bullish territory but historical movement on
this indicator hints overbought reading and might bring a reversal in this
counter. 14 periods daily RSI is also
around 67% and remains favourable for bears as long as RSI zone shift takes
place. In this set-up we are using 2 moving average system to determine long
term trend but short term ( 50 days) moving average is below long term (200
days) moving average that suggests a clear down trend.
Immediate resistance is now seen near 8000 zones. However, retest to these levels can’t be ruled out but we need stability above 8000 to confirm a move towards 8400-8600 zones. Stability below 8000 will remain favorable for bears and primary profit booking might take this index towards 7700-7550 zones. Areas of 7450 are supported by up sloping 50 days SMA and a temporary bounce can’t be ruled out from those levels in case if nifty fails to hold 7700.
Immediate resistance is now seen near 8000 zones. However, retest to these levels can’t be ruled out but we need stability above 8000 to confirm a move towards 8400-8600 zones. Stability below 8000 will remain favorable for bears and primary profit booking might take this index towards 7700-7550 zones. Areas of 7450 are supported by up sloping 50 days SMA and a temporary bounce can’t be ruled out from those levels in case if nifty fails to hold 7700.
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