After having a sharp run from the lows of 5,252, exactly to our expectation spot index shown some profit booking around 5,750 though we believe momentum still favoring the bull till 5460 wouldn`t be breach down with substantial volumes. Therefore, for the upcoming week possibility of range bound scenario between 5,460-5,800 could be more visible at this stage. Any closing above 5,800-5,810 with substantial volumes may reap indices towards 5,960-6,000 where traders are advised to create short positions,`` said the broking house Mansukh. Further, the broking house said the following:
On the flip side any break down below 5,460-5,470 may further spoils the sentiment and we might see some sharp sell off near to 5,300-5,330 where suggestive buying opportunities may arise.
The indices have closed in the lower end of the intraday range as the bulls were unable to offer follow up support at higher levels, during the session. The intraday range specified for the Nifty between the 5740 / 5625 was overcome as the Nifty tested the 5560 levels, thereby exceeding our intraday levels on the downsides. The coming session is likely to witness resistance at the 5650 levels on advances. Support is likely at the 5400 levels. The wide range is due to the high base effect of Tuesdays range. The bullish pivot for the session is likely at the 5650 levels above which the Nifty must stay throughout the session. The bearish pivot is at the 5610 levels below which declines may occur. Traders must watch these levels for signs of trend determination in the coming session.
The daily candle chart of the Nifty shows a large bodied bearish "daki" candle (bearish engulfing) which is an outside day on the western charts. This indicates the bears displaying strength at higher levels for now. Unless the candle top (5700) is overcome sustainably, the retail tyrader is unlikely to return in a hurry. The higher volumes are a sign of caution & distribution. The Nifty (spot) must stay above the 5650 levels sustainably with volumes and open interest expansion to rally intraday on Wednesday. On the flip side, sustaining below the 5610 levels may trigger a fresh bout of declines.
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