Nifty Hourly chart broke below the crucial support of 5535 yesterday but short covering in late hours came and Index closed above this level. Break of 5535 makes Technically Nifty weak and today we will see a gap down opening owing to global cues.
Looking at hourly charts if we break 5597 in morning hours today than we can see a quick fall till 5470 where one should cover positional shorts.
5470 has been a good support so Nifty might give a quick bounce and Hence can be traded for quick points.
Next Level of support is at 5441 on Hourly charts.
On Daily charts Nifty is on verge of Breaking the rising trendline shown in red color on above charts.
If 5497 is not broken Nifty will again be in trading range of 5497-5700 which it has been trading from past 13 days.
Keep an Eye on 5497 if taken out than Nifty will quickly move to 5470 and 5442 in the day.
If 5497 we can again scale back to 5600 Levels.
Will It be third time Lucky?
The most important aspect of Trading is Keeping it simple.
If we see the above chart Nifty took Resistance at 200 DMA for 2 times in a row and Corrected and the similar fashion 50 DMA has provided support for 2 Times in a row as shown above.
Now the Million Dollar Question Will it be Third Time Lucky
As Today is Expiry Nifty has been trading in the Range of 5497 and 5740.Average of Which is 5618
So As a rule below 5618 Bears are in Profit and above 5618 Bulls are in Profit.
Now If Bears are able to Break 5497(Monthly Low) Bulls needs to unwind there long and Bears can Rollover there Shorts to Next series. Unwinding of Longs will Create a Snowball effect and Nifty can See some Quick fall to 5470 and 5442 Levels.
The above is just an Observation please Trade Only on Levels as per your trading system.