Skip to main content

Lower gap acting as cushion to Bulls. Break to correction...


From past 3 trading days, nifty witnessed severe profit booking from 12430 to 12087.
Nearly 343 points fall from highs. As mentioned in previous update, lower gap existed at 12133-12045 acting as support for Bulls.
As per today's opening pattern, it clearly visible that bulls applied breaks to correction and stepped in. Formed Bullish Harami pattern as per Candlestick analysis. It is possible that Short covering action lifts market further upward direction. Similar candle pattern clearly visible in Banknifty charts.

                                  Technical indicators like MACD , RSI clearly showing trend changing signals. 
As we approaching near to expiry week, short covering rally can begin from current levels. In doing so, nifty has to break out first swing high, which is placed at 12230. Once Bulls succeeds in breakout this 12230 swing high, we can expect this momentum to pick up more upside direction.
Many of high beta stocks completed minor corrections from higher levels, can attract bulls for taking long positions.

Resistance 12230.
Support zone 12130-12045 gap zone.

Regards,
Suryadev Bandari
Research Analyst
www.earningwave.com



Popular posts from this blog

LIVE ON DOORDARSHAN 8 YADAGIRI "BUSINESS MUCHATLU"

Exhaustion gap formed. Bulls strength eroded???.

Nifty bounced back strongly on back of Major news announcement of Cut in Corporate Tax on Friday. Today nifty retraced 61.8% of entire fall. As of Now, wave 2 in finishing stages.  More possibility for Wave 3 down to begin any time soon. Hence, Be cautious. Its time to reduce long positions. Profit booking time. From current levels, nifty likely to retest 11000 levels anytime. Short term top made. New highs may not be possible from here. Keep booking profits in long positions. Wave 3 Impulsive Down move can begin any time. Regards, Suryadev Bandari Research Analyst www.earningwave.com

Triangle formation still in progress. 8900-9200 upward resistance.

Nifty still in a triangle formation and wave e of the triangle is due as per updated pattern. The minimum upside for the short term is 8900-9200. Avoid fresh short selling at this juncture. Pull back rally is due. Supports can be found at 7700-7500. The range is Huge, so risk also high. Private sector Banks also completing triangle like formations in their respective charts. We can see some short term buying in private banks at these lower levels. Trade accordingly. Regards,  Suryadev Bandari Research Analyst