Yesterday Bulls succeeded in holding critical support zone 9100-9000.
Bears failed to breakdown this important support.
As per latest data update, Nifty chart indicating that still one minor upside wave possible towards 9600 first as there exists big gap areas ( Island reversal pattern). that's the reason today it attempted to move up above 9600 but bulls unable to hold higher levels in first attempt witnessing weakness.
As per Rule of Polarity, Resistance becoming supports now.
Yesterday it took support at previous resistance level 9050.
Today it taking support at previous resistance 9350.
Hence, all these patterns indicating that as long as nifty holds 9350, one more upward bounce possible.
Upside targets would be 9600 first , then 9800 next target.
Traders can initiate fresh long positions for short term point of view.
Keep strict stoploss for longs below 9050-9000 zone.
Entire bounce from 7511 is wave B of higher degree and is still in progress.
There is no doubt that Wave B is counter trend move.
These kind of moves shall be used to create short term trading setups only.
Long term trend is still in down side.
Supports 9350-9250./9000.
Resistance 9600-9900.
Regards,
Suryadev Bandari
Research Analyst
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