Nifty broke the support zone of 5270 and headed lower till 5230 in the previous trading session. It broke the short term bullish scenario of higher top and higher bottom formation. As per the current structure it is respecting the bearish island of 5350 levels and would be a tough level to cross in the short term. We are close to an immediate support zone of 5200 and a bounce can be expected thus it is advisable to take off some profits if one is short below 5270 zone. The big gap up opening happened close to 5160-5180 and that would be a strong support area where lot of buying could happen. If we consider the world market charts Dow is close to the mentioned support zone of 12400 zone and S&P is forming a bearish flag kind of a pattern where we could see one more lower top before sliding down. Volatility index is showing some short built up in the system but the turnover data is telling that no huge volume is seen on the sell side. Institutional traders are still on the long side and we could see 5180-5200 support zone holding in the short term and 5300 levels would be a tough level on the upside to crack. The trading range can be 5200-5300.
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