Stock bounce in morning and started coming down as soon as 5378 got taken out.
Indicators are oversold but trending market it really does not matter. An Indicator can remain oversold for prolonged period of time.
Nifty kept on making lower bottoms and lower high on daily chart after the break of trendline support. As discussed yesterday Nifty left a gap till 5434 which needs to be filled. Nifty today High was 5434 as gap got filled Nifty continued its downward journey.
Upside can be expected only if 5320 is not broken.
On Upside Support becomes Resistance Theory will work and 5404 becomes the next resistance.
Tomorrow is Weekly closing Nifty Broke the trendline today at 5404 closed at 5331. If this downtrend needs to be stopped we need to close above 5404 on Weekly basis.
If Broken than Bearish engulfing pattern which will have a bearish implication and we can break the 5177 low also.
Levels for Tommrow
Sell Below 5323 Tgt 5291,5276,5252
Buy above 5364 Tgt 5378,5404 and 5434
Trade with Trend and Stay Disciplined.