We said that formation of green candle indicates bullish bias but never negates the possibility of intraday fall around 5020 level. After opening lower on Monday’s trade, Nifty witnessed rise but restricted its trade below 5060 by testing day’s high at 5055 level and slipped down at day’s low at 5002 level. Finally, witnessing some rally in last an hour of trade, Nifty closed at 5039 level by losing 11 point.
On daily chart, Nifty has formed “in body” small green candle with upper and higher lower tail. This implies tug-of war between buyers and sellers. It means neither bulls nor bears were able to gain control. This could be the indication of development of turning point. In such kind of scenario, 5080 on upper side and 5020 on lower side remains important levels to watch. If Nifty succeeds to hold and sustain above 5080 level then it will extend its rally i.e. above 5080 will lead 5110-5160 levels in coming trade. On the downside, if Nifty fails to hold and remain below 5020 then it will trigger fall. In that case, t Nifty’s fall into previous gap area of 4880 levels in few session can not be ruled out.
(..remember ….the violation of 4728-20 level has open the possibility of 2nd corrective after “x” wave as we mentioned earlier …in this case, Nifty has strong possibility to test 4400 (in case of double combination) and below that in between 3800-4200 level (in case of triple combination) in coming session. As of now, it could be “b” of A of 2nd corrective which has good chance to test 5260 level (only in case of Flat pattern….in case of Zigzag it will end around 5110 level…pls note) . After that we expect downward “c” of A which will trigger the violation of recent bottom of 4639). As per rule, the 2nd corrective could be a triangle means the fall from 5399 could be a part of Triangle …)
The level of 5020 will acts as trend decider level for the day. A sustainable move above this level will lead rise around 5080 levels in Nifty. However, failure to trade above this level will trigger correction around 4960-80 and below levels in Nifty.
Support :- 1) 5020 2) 4980 3) 4940
Resistance :- 1) 5080 2) 5120 3) 5150