1- intraday trading patterns are not showing selling today
2- intraday patterns are showing consolidation formations today
As intraday patterns showed consolidation within 5870-5940 yesterday therefore sustaining below is must for any down move confirmation and if Nifty does not sustain below 5870 and cross 5940 then fresh strong up moves will be seen. Selling in previous sessions and buying yesterday are suggesting to get confirmations from break out of 5870-5940.
Last 14 sessions EOD chart is showing symmetrical triangle and it is continuation pattern. Break out of this pattern should be watched for next strong and decisive move confirmations.
1- Symmetrical Triangle (Continuation Pattern) Chart:-
Following news will also be crucial therefore should be kept in mind.
1- Credit policy today and any type of rates hike not expected. Banks facing liquidity problem and CRR cut can not be ruled out today after decline of inflation and encouraging IIP,GDP data.
2- DMK may withdraw support after CBI raids but in that situation there will be no danger to Union Govt because required 9 MPs support will be easily managed(AIADMK & SP) by Congress and no impact on Govt stability will be seen. As Stock markets moves on sentiments therefore in this situation panic selling and bottom possibility can not be ruled out therefore caution required. If supports withdrawl news comes during trading hours then it may cause panic therefore trading long positions should be held with stop loss in system. It is also very much expected that market will bounce back after any panic because Govt will survive finally and supports arrangements would have been done before CBI raids. As it may happen therefore should be kept in mind.
Mixed intraday formations in last 2 sessions and above mentioned news flow will also influence market today therefore today intraday formations will tell first for preperation of next moves and sustaing beyond after break out(5870-5940) will give next moves confirmations. Above shown Symmetrical Triangle break out will confirm next big move.
Today may be high volatile day therefore cautious approach required.