As good consolidation between 5630-5700 and break out on Monday therefore strong rally was expected but Nifty slipped sharply last Tuesday after more than 4 hours trading within 5750-5800 and reasons of this fall are as follows:-
1- Sentiment was heated bue to positive all the global markets Tuesday morning.
2- As Repo rate hike was 25 points therefore already heated sentiment evaporated and retailers huge buying built up.
Profit booking developed in news based heated sentiment last Tuesday. Technical positions of last Tuesday is as follows:-
1- Bearish Engulfing candle formation
2- 4 Hours selling within 5750-5800
3- Last 2 hours down move patterns indicating consolidation patterns.
Lat 7 sessions supports and resistancs are as follows:-
1- Strong support range 5630-5700.
2- Selling range 5750-5800.
Nifty formed the bottom at 5681 last Tuesday therefore today expected 1st range should be 5680-5750 and Indian markets will prepare for next moves within this range. Following points are suggesting continuation of rally despite sharp declines last Tuesday:-
1- Wave-3 is on and last 4 months EOD charts are not suggesting distribution patterns at higher levels therefore on going down move is intermediate term correction only to get support at 200-Day EMA and that has already been happened.
2- Already got strong supports at lower levels within 5630-5700.
3- It seems that last Tuesday sharp slipping is for cooling down of sentiment only to discourage retailers from rolling over long positions to next settelment.
1st trading range is 5680-5750 and expected that Indian markets will consolidate within this range today as well as in the coming sessions to cross firstly 5800 and then higher levels.
Continuation of rally and Green closing expected after fresh consolidation within 5680-5750 today.
1- Sentiment was heated bue to positive all the global markets Tuesday morning.
2- As Repo rate hike was 25 points therefore already heated sentiment evaporated and retailers huge buying built up.
Profit booking developed in news based heated sentiment last Tuesday. Technical positions of last Tuesday is as follows:-
1- Bearish Engulfing candle formation
2- 4 Hours selling within 5750-5800
3- Last 2 hours down move patterns indicating consolidation patterns.
Lat 7 sessions supports and resistancs are as follows:-
1- Strong support range 5630-5700.
2- Selling range 5750-5800.
Nifty formed the bottom at 5681 last Tuesday therefore today expected 1st range should be 5680-5750 and Indian markets will prepare for next moves within this range. Following points are suggesting continuation of rally despite sharp declines last Tuesday:-
1- Wave-3 is on and last 4 months EOD charts are not suggesting distribution patterns at higher levels therefore on going down move is intermediate term correction only to get support at 200-Day EMA and that has already been happened.
2- Already got strong supports at lower levels within 5630-5700.
3- It seems that last Tuesday sharp slipping is for cooling down of sentiment only to discourage retailers from rolling over long positions to next settelment.
1st trading range is 5680-5750 and expected that Indian markets will consolidate within this range today as well as in the coming sessions to cross firstly 5800 and then higher levels.
Continuation of rally and Green closing expected after fresh consolidation within 5680-5750 today.