Nifty continued its winning streak by gaining 104 points huge gain. Nifty responded to the massive global rally with a big gap opening and touched the days high at 5011 level in intraday trade. Finally witnessing some intraday correction in last an hour of trade, Nifty closed above another psychological hurdle of 4900 mark at 4936 level.
On daily chart, Nifty has formed Red candle with higher upper tail. This indicates profit booking at higher level. In such a kind of scenario, the level of 4900 will remains important levels to watch. If Nifty fails to hold and remain below 4900 level for the day then it will see fall into the yesterday’s gap area in between 4865 to 4880 levels. While if Nifty manage to sustain above 4900 level then it will continue the rise above below 4960 and above 5000 level.
(..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. )
The level of 4900 will acts as trend decider level for the day. A sustainable move above this level will lead continuation in pullback rally in Nifty. However, failure to trade above this level will lead further intraday correction around 4860-80 levels in Nifty.
Support :- 1) 4900 2) 4860 3) 4820
Resistance :- 1) 4970 2) 5010 3) 5050