In line with our expectation yesterday market opened strongly with a gap up of about 150 points and the opening high remained the day’s high. Nifty did not dared to break our third resistance of 3667 which is almost near to the 200 week moving average and any up move has to break this level for further upward movement. In the second half session, nifty showed some weakness which may be attributed to selling pressure at high levels and eventually came down to fill the opening gap up to close at the lowest point of the day which is not at all a good sign for the bulls.
It seems celebrations are fading out in US market as it traded and closed with a weak note. Following the US market Asian markets also opened and trading weak. In line with the global markets nifty is also expected to open weak with a flat to negative note. Don’t be surprised to see a Gap down opening in nifty.
On the upper side nifty may find resistance near 3610 or 3695 levels. Similarly on the lower side support exists near 3462, 3405 or 3370 levels. In the daily candle stick chart, yesterday’s trading left a “Inverted Hammer” which is one of trend reversal pattern and same can be confirmed by today’s trading.
Happy Trading !
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