Nifty Hourly traded as we had discussed in Previous post taking support at lower end of 5255-5245 range and resistance around 5325-5330 levels.
Classical Example of Support 5325 (Swing low before the fall) becoming Resistance Today’s High 5330
On Daily chart Fibo retracement from a High of 5609 to low of 5196 give 38.2% retracement @5354 which should be next level of resistance if Nifty moves up above 5330 in tomorrows session.
RSI and Stoch are in oversold, and Bounce back is expected.
Nifty today formed a Bullish engulfing pattern which should be validated with tomorrow close above today’s high of 5330 else it gets invalidated.
Always remmeber Indicators can remain oversold for an extended period of time.
Was US Fed not talking about QE =3 positive for India and China
Well Economy remains stagnant but S&P US stock market rallied 28% after that .
Now What was the effect of QE -II on India?
I am a firm believer market discounts everything well in advance Now if u See on Nov 04 US Fed announced the package and Nifty peaked at 05 Nov DIWALI Day.
Market has sensed the additional liquidity will drive commodity prices which in turn will bring inflation to emerging countries INDIA and CHINA.
This is just an observation which i thought of sharing.
Levels to Watch for 24 June
Buy above 5330 Tgt 5354,5377 and 5422
Sell below 5298 Tgt 5271,5252 and 5222
Levels mentioned are SPOT levels.