Nifty has traded in the lower band below 6000 levels throughout the day and revolved around 5965 levels with an intra day dip to 5939 and recovering to 5990 and then being mostly around 5966 level. VWAP @ close is 5992. Nifty closes flat once again @ 5977 and a good consolidation has happened around the levels of 5960-6010 over the past 5 trading sessions.
1) The level to watch tomorrow is 5986. Trading above 5986 without breaking this level could likely take Nifty to 6050 level with short covering itself. Fresh buying will come into play only above 6085 levels. Till then this range bound scenario between 5965-6065 will likely continue. The bullish zone will be 6000-6050-6085-6135. Level of 5984 will be a good stop loss for intra day longs. Higher volumes will come in only above 6085 levels.
2)If the negative bias continues below 5960 (55-DEMA level), then Nifty could go below today's low of 5939 to test 5900-5880-5840 levels.
3) There have been five consecutive closings above 5960 levels with significant resistance around 6020-6050 levels and now any close below this level will truncate the retracement towards 6300+ levels. The annualized volatilty is getting lower and what can be assumed from a trading perspective is that a higher bottom will be in place sooner. Whether today's bottom of 5939 levels hold good in the short term will only be confirmed if we close above 6085 levels on a weekly basis without breaking today's low. Happy trading!
No comments:
Post a Comment