The indices have closed in the upper end of the intraday range as the bulls were able to offer support at lower levels during the session. The intraday range specified for the Nifty between the 5175 / 4875 held as the Nifty kept within these levels, thereby validating our intraday levels. The coming session is likely to witness resistance at the 5200 levels on advances. Support is likely at the 5000 levels. The wide range is due to the high base effect of Tuesdays range. The bullish pivot for the session is likely at the 5090 levels above which the Nifty must stay throughout the session. The bearish pivot is at the 5025 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 big gap down candle, which was filled intraday and the 5100 - 5110 area (the point of conflict between bulls and bears advocated yesterday) was breached briefly. As long as the bulls keep the Nifty above this threshold, the bears will be forced to cover shorts for now. The possibility of a pullback maybe fair, though sustainability beyond a brief period maybe suspect - for now. The downward sloping trendline remains an impregnable resistance for the bulls to overcome. The Nifty sustaining below the 5025 levels may trigger a fresh bout of declines.
Technically the market is over stretched and has the potential to bounce back and so if the market sees a dip then that dip could be bought a tight bounce back…strong supports is around 5,000 and that is exactly how the market unfolded though it closed negative…technically nothing changes and I would say we could see some back as 5,000 seems to be a psychological support,``
``The support for the Nifty is at 5,000-4,778 and resistance at 5,250-5,340. For Sensex, the crucial support on the downside is at 16,620-15,986 and resistance at 17,500-17,737,``
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