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Staying Below 9400 Bearish for Nifty. Stay Alert.

Major trend reversal possible below 9400. 

Bounce from 7500 to 9385 appears to be corrective in nature and Possible Triangle pattern as mentioned in Previous updates.
Today it looks like that Wave e of Triangle pattern about to finish or finished already at 9375( day high).
Here, we have two possibilities for nifty outlook.

i). Failure to cross above 9400 resistance level implies that Triangle pattern in force and can take U-turn any time from current levels towards 8900-8800 positionally.

ii). In case, Bulls succeed in breakout 9400 level implies that nifty can test 9600-9700 on upside Before taking U-turn.

Hence, watch 9400 spot level and trade accordingly.

Most preferred View: As per technical charts, a series of negative divergences at resistance levels indicating that most preferred view is triangle pattern about to complete its pattern and downtrend can resume soon.
Keep 9450 as stop loss for short-selling positions for low-risk entry for targets 8900-8800 zone.

Option data also indicated that 9300 and 9500 important resistance for  short term.
9000-8900 important supports for short term.

Suryadev Bandari
Research Analyst

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