Nifty continued its winning on back of global rally. After opening merely one point higher and witnessing fall at 4918 thereafter, Nifty rebounded and surged above another psychological mark of 5000 level. At the end, Nifty registered close at 5050 level by gaining 114 point.
On daily chart, Nifty has formed big body green candle with small upper and lower shadow and closed above 50% retracement of entire rally from 5399 to 4639 level. This indicates bullish bias but never negates at least intraday fall around 5020 level. In case, if Nifty succeeds to hold and sustain above 5080-5100 level which is acting one of the important resistance level for the day then it will continues the rally. In that case, The possibility of Nifty testing 5160-5260 levels in coming session will remain on card. On the other hand, failure to trade above 5080-5100 level will lead profit booking in Nifty. In this case, Nifty will test 5000 and below that 4960 levels.
(..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 B 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 B 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 continuation in pullback rally in Nifty. However, failure to trade above this level will trigger correction around 4960-80 levels in Nifty.
Support :- 1) 5020 2) 4980 3) 4940
Resistance :- 1) 5080 2) 5120 3) 5150