A weekend sell off and index was in negative territory throughout the day to break all short term EMA and SMA levels. VWAP @ close is 6153. Nifty closes near the lowest point of the day @ 6071 after touching a low of 6056.
1) Trend is negative and next major important support level is 5982 and this level also happens to be the 55-DEMA levels now. The chart depicts the support the level of 5982 has provided over the past month.
2) If Nifty manages to remain above 6085 level and later 6105 levels on Monday, then reversal can be expected above 6135 levels for an upside target of 6200-6225 on closing basis primarily due to short covering rally.
3) Failure to sustain above 6085 levels then Nifty is looking down towards the 55-DEMA level of 5980 and before that minor support of 6035 is already within striking distance of today's close. Thus the support at the level of 6035 assumes significance on Monday. Break of 5980, then 5870-5770 is looking possible. Happy trading! Happy weekend!
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