From the way market recovered from its week low of 3800 and the way it had closed on Friday without showing much weakness suggests that some more momentum is left on the upside. The upside momentum should be over in 2 or 3 days.
As the US market closed with high gain on Friday and most of the Asian market are in green nifty may open mildly gap up. Nifty will try to breach the Fibonacci retracement level of 4268 which it failed to cross on Friday. Once this level is crossed market will encounter resistance around the 20 day and 50 day moving average crossover which is around 4280-4300. If this is also breached then the next logical resistance would be 4379 & 4400 where profit booking is expected to take nifty down.
It is also to be noted that if nifty closed in green today then we would be completing 3 days of positive sessions in a row. Also since this week is an expiry week this factor is also to be included in the equation of volatility.
Happy Trading !
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