Beruflich Dokumente
Kultur Dokumente
Nifty
Trend
Support
Resistance
7948
Up
7860
8060
Current Observation:
After showing consolidation with weak bias in the previous couple of sessions, Nifty witnessed an excellent upmove
today and closed the day higher by around 157 points.
Nifty opened today with upside gap (body gap, not a western gap) of around 130 points and started to move up soon
after the opening. The upward journey continued for the entire session and Nifty closed the day near the days high.
Todays opening upside gap remained partially filled.
Currently, Nifty is making attempt to move above the crucial overhead resistance of around 7950-60 levels as per the
concept of change in polarity (green dashed horizontal lines).
The valuation area of 7950-60 levels has been significant over the last 6-7 months as Nifty showed few important
bottom reversal patterns and moved up smartly from the support of these value area in past. Nifty witnessed a sharp
downside breakout of this key support on 24th Aug, with the formation of relatively large bearish candle.
RETAIL RESEARCH
So, if the market manages to show decisive upside breakout of this hurdle for short term, then it could have a sharp
positive impact on the market for near term. However, not able to sustain above the valuation resistance or a false
upside breakout, could be a beginning of another round of weakness from the highs.
The couple of important opening gaps (of 21st and 24th Aug; breakaway and runaway gaps respectively) are still open
and they are unchallenged, 3-4 days after the opening. If these gaps are not filled in the next 2-3 sessions, then that
could be presumed as a weak upside bounce and that could ultimately have further negative impact on the market.
The short term trend of Nifty is gradually turning out to be a positive and the decisive upside breakout of 7960 levels
could have a further confirmation of more upside moves and the likelihood of filling the previous opening downside
gaps up to 8225 levels or more for near term.
However, not able to sustain the upside breakout or a false upside breakout could result in a beginning of another
round of sell off from the highs. Immediate support is now placed at 7860 levels.
RETAIL RESEARCH
RETAIL RESEARCH