Nifty futures got resisted at our upper band of 5400-5410 and is moving in the downward channel to 5200 zone once again. In the shorter time frame it is forming lower tops and lower bottoms and a break above this zone could be seen as a good reversal on the upside. It is taking some time to form the base and a bigger range bound would be inevitable for a good up move. Thus it would be good for nifty if it takes its own time to break on the upside. On the down side 5200 - 5250 would be the area to cover the short positions and i would like to create any long positions only above the mentioned resistance zone.In a range bound market like this we should get the tops and bottoms to take a trade and as we got the top at 5400 levels it would be easy to be on the short side for smaller gains.On a larger frame work the base forming pattern is intact and no market in the world can be trending all the time and if it spends most of its time in a range bound session it is a clear indication of a bullish setup. Cooling off of crude oil would be a big relief for the equity markets .As i mentioned in the previous post 5330-5320 is a key area to watch as lot of long accumulation has happened in that region and nifty futures never broke out of that zone on friday.Thus squaring off of long positions might lead to a clear sell off but consider any major fall as an opportunity to do some value buying. Lets keep a range of 5250 5410 as the weekly range. On the upside it would be a break out only above 5400-5410 region.
No comments:
Post a Comment