We were watching 4730 as trend decider level for the day and expecting at least intraday pullback at 4830 levels once it gets hold. Despite opening lower at 4733 and losing merely five points in early trade, Nifty rebounded and touched the day’s high at 4824 levels in intraday trade. At the end, Nifty registered “psychological” close at 4800 mark with the gain of 36 point.
On daily chart, Nifty has formed “Thrusting line” a bullish continuation pattern by taking support at important level of 4730 level. This could be the indicative of temporary pullback in Nifty. In this case, the level of 4830 becomes important level to be watch. As we said before, in case, if Nifty succeeds to hold above 4780 and sustain above 4830 then it will see continuation in pullback in Nifty. In that case, Nifty will test 4880 and above that 5000 levels in coming session. On the other hand, if it fails to hold and remain below said level then we will see violation of 4700 mark in few sessions.
(..pls note ….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.
We said that the rally from 4639 level could be label as “b” of wave A which we mentioned as 2nd corrective. Further we mentioned that it has good chance to test 5260 level (only in case of Flat pattern) but in case of Zigzag it will see an end around 5110 level. After testing high of 5099 level on 7th of this month, Nifty observed stiff fall and lost 338 points within three days trade. This could be the indication that “b” of wave A either subdividing into three wave structure (a, b c pattern) or ended at 5099 level as a part of Zigzag pattern. In case of subdivision, it will end above 4680-4700 level but in case of “expected c” wave, it will violate previous bottom of 4639 level….pls note)
The trend decider level for the day is 4830 level. A sustainable move above this level will lead further rise around 4880-4900 levels in Nifty. However, failure to trade above this level will lead fall to test 4730 mark again in Nifty.
Support :- 1) 4780 2) 4740 3) 4700
Resistance :- 1) 4830 2) 4870 3) 4910