Nifty Hourly is trading in a parallel channel as shown in above chart. We can see formation of lower highs and lower top.
Break of 5550 will take Nifty out of channel and break of 5496 will continue to drift lower and can see levels of 5436.
Hourly Indicators are oversold but that should not be taken as indication to buy as indicators can remain overbought and oversold in trending market.
1. Formed today @5580-5610 which should be filled before any downmove. Bears can keep 5610 as SL for Longs.
2. Near 5330-50 this should get filled if 5496 breaks in coming days.
Now this is an Interesting stuff Fight of Moving Averages
Break of 50 SMA@5496 can lead to further weakness and Bears will try to break this level.
Bulls will try to close above 100 SMA@5565 will give power to bulls.
Levels for Today
Buy above 5534 Tgt 5565,5580 and 5606
Sell below 5496 Tgt 5480,5451 and 5436