Nifty fails to cross 5-DEMA level of 5832 convincingly and tanks below 5700 in afternoon trade to touch a low of 5640 and close @ 5655. VWAP @ close is 5750 indicating the level from where sell off started later in the day after having taken support at 5700 levels earlier in the day.
1) The level of 5770 will be reversal point for Nifty for Monday. The scenario is bearish and no long positions can be initiated as Nifty is well below all EMAs and now should ideally fall to 5555 levels first if it continues to trade below 5750 levels for a couple of more sessions. The 233-day EMA is 5576.
2) Going short on rise up to 5770 with stop loss of 5790 is the best trade set up at this lowest close in 4 months. Happy weekend! Happy trading!
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