Nifty Hourly formed a double top at 5522 on hourly charts on Friday trade. Double top confirms the downtrend and a close below 50 SMA@5518 confirms the downtrend.
Indicators are giving positive divergence but divergence should always be confirmed with price action.
On Downside 5472 and 5436 are next valid support for Nifty.
Nifty Daily chart has broken down the trading range of 5497-5740 on downside and has traded 2 days below the Breakdown level of 5497. Nifty has formed 2 DOJI Patterns in past 2 trading sessions owning to uncertainty in Debt Deal in USA.
On The downside Market if it breaks the 5404 levels than the gap which was unfilled near 5320-5332 levels will get filled and Shorts should get covered.
Technically Nifty is looking Very Weak below 50 SMA@5518. 50 SMA was support for Index in past 2 trading sessions and will now become the resistance for any furthur upmove.
As per Fibo levels 5532 is resistance on upside and 5468 will be the Breakdown level and can see support 5404 levels.
On Weekly charts Nifty is nearing its lower trendline and break of it can take us back to Feb low of 5177.Weekly Candle has formed a bearish engulfing patten which is having a bearish implication if 5454 breaks on downside.
On Upside Weekly charts will face resistance 5532,5585 and 5615 levels.
Nifty Trend Deciding Level:5546
All Levels mentioned are Spot Levels and Stay Disciplined!!