Earning Wave

Yesterday Nifty drifted below its Weekly support 10791 in the opening hours, but later of the day it recovered from lows to above support level , closed near 10844. In daily scale, position of the green candlestick not so strong formation. Huge Call writing was done in strike price of 10900 and 11000. Put writing not so visible much. Options data suggesting that 10900-10940 going to be stiff resistance and nifty likely to trade between 10640-10900 zone. Traders need to be noted that, 'daily trading range' of the nifty widened and high volatility in market, results in 150-200 points range in intraday. 10820 crucial support for nifty for intraday, below this level, Bears strikes again and takes nifty lower. Keep an eye on this level. As long as nifty trades below 10950-11000 levels, Every bounce faces selling pressure. Resistance 10940-11000. Support 10790. Regards, Suryadev Bandari Research Analyst.

As expected nifty Opened gap down below crucial support level 10950 and entire day trading below that. This is indicating lack of buying interest in traders.  Finally nifty closed near crucial weekly support level 10797. On weekly scale, support exists at 10790. Today this level need to be watched. Staying and trading below this 10790 level attracts fresh round of selling pressure. Almost all sectors in selling mode. Markets in Sell on Rise mode.  Until nifty moves above 11000, avoid taking fresh long positions. Global markets too witnessing selling intensity.  Resistance 10950. Crucial support 10791. Next level to watch 10730. Regards, Suryadev Bandari Research Analyst

Nifty almost completed Running Flat pattern as part of counter trend move. Now its vulnerable to correction as part of Impulsive down wave towards previous lows. Be alert about long positions. On Friday last leg of flat pattern almost completed and closed below crucial resistance level 11155-11200 zone. As long as nifty trades below this resistance, Trend deemed to be bearish. Impulsive down moves often furious fall anywhere between 150-200 points dip in a single day. Keep strict stoploss to long positions. Friday's GDP DATA showed growth at 6 years low. Conversely, Gold trading at 6 years Highs. Both data indicating that Equity markets to face rough road ahead. Resistance 11155-11200. Crucial support 10900. Next level to watch. 10640. Regards, Suryadev Bandari Research Analyst  

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Nifty formed zig zag pattern as counter trend move from 10640 to 11141. Another impulsive down move begins from current levels any time. 200DMA at 11155 acted as stiff resistance and as long as nifty trades below that level, trend is down. Nifty trading range has increased so huge volatility possible in market. Keep booking profits in long positions, if any. Avoid fresh long positions. Positional Short sellers can initiate fresh short selling in specific stocks. Nifty Resistance 11155-11225. Nifty crucial level 11045. support at 10900. Regards, Suryadev Bandari Research Analyst.  

As expected nifty taken U turn from 11150 to 10631. As per Elliottwave Principle, downside pattern not yet completed. so this bounce is temporary and down side momentum possible today(Monday). Its not a right time to take long positions at current levels. Sharp Pull back rallies quite normal in Bear markets. Nifty needs to cosolidate between 10600-10900 zone. Global markets turned into sell on rally mode. Inversely, Gold prices moving north side. Fresh long positions not suggestible as long as nifty takes support and moves above key resistances. Downside supports 10600-10580 Resistance 10900-11000 Regards, Suryadev Bandari Research Analyst  

Triangle formation in progress as part of counter trend move from 10800 to 11140 zone. Its in last leg of triangle pattern. Today or tomorrow major down trend to resume towards 10800 level from current levels. 11200 strong resistance for Nifty. 11000 psychological support. 10900 Technical support. Avoid taking fresh long positions. As far as possible reduce long exposure as any time from here down trend resumes. Sell on Rise market. Regards, Suryadev Bandari Research Analyst