Nifty Daily Chart
Nifty is forming a wedge pattern as shown in charts and again it formed a Hammer formation which if preceded by a Green candel show it effect and short term trend reversal can happen.
A good upward reversal should close above previous day’s high .
Today FII sold 1500 cores in cash which is not at all a good sign,Brewing tension on Koreans and 2 G scam is weathering Nifty’s bull run.
Today we had a brief fall below 5825 and a bounceback,I have mentioned in Weekly Nifty Technical Analysis that we have support in range of 5865-40 and it came handy today and we had a follow up rally from the lows.We had a relief rally which moved us till 5960 which again is a diffcult resistance as per 5 Day Chart
Friday Low 5865 was met with a counter rally till 6020
Today’s Low 5825 was met with a sharp counter rally of 5960
Now we are forming lower lows and lower highs. If we see the Correction which happened in this bull run averga was 9-11% if we take an avg of 10%
6332-633= 5700 6332 is high on Nifty and 633 is 10% avg of that
So we may see a downside till 5700 if 5825 breaks.
Nifty Resistance:5973,5997 and 6059
Nifty Support :5865,5849 and 5763