Nifty opened @ 5946 levels and traded between 5928 to 5976 levels with significant resistance around 5966 levels and expectedly the negative bias took place after 2 pm when the day's low of 5928 broke and Nifty fell below 5900 levels. VWAP @ close is 5937. Nifty closes @ 5865 after touching a low of 5833.
1) Tomorrow will be highly volatile trading day being the settlement day of November series and it is better to avoid intra day trade tomorrow.
2) The chart above shows reversal on upside can happen from only the opening level on the board after the pre-market session and the opening level can be used as an entry point for long trades intra day. For example, today's opening level of 5946 gave an intra day 25 points upside and reversing from that level gave another 75+ points on the downside intra day. It is clearly sell high and buy low time for intra day.
3) A new low below 5825 can be expected around 5790 or 5700 levels as per fib retracement numbers. Nifty November series has seen the life high closing of Nifty and then a reversal to new lows in 8 weeks breaking important support of 5966. If this fall continues tomorrow, then Nifty November series could close at a new low tomorrow. But the bulls will press hard for a closing above 5950 levels minimum tomorrow and the level of 5850 intra day will be a good point to initiate a long trade by bullish brave heart traders with a stop loss of 5820 for a target of 5950. It is the short sellers who now need to defend their points in November series and expect the unexpected tomorrow. Happy trading!
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