We were watching 5226 levels on upside and 5160 levels on downside as trend decider levels. After opening at 5163 levels Nifty rose merely 3 point and registered days high at 5166 levels. Thereafter, it could not hold the gain and fell down below 5100 levels at day’s low at 5076 levels. At the end, Nifty closed with huge loss at 5087 levels by losing 117 point.
On daily chart, Nifty has formed huge bearish continuation body gap down candle against Friday’s “high wave” candle. This indicates further weakness in the trend. In case, if Nifty fails to hold 5120 which is acting as important resistance levels as 50% retracement of huge bearish candle and remain below psychological levels of 5100 then it will continue the downward correction in coming session. In that case, Nifty’s possibility of testing 5000 in coming session will remain on card as we said before. On lower side, the important support for the day lies at 5060 levels. If Nifty manages to hold this level then we will see intraday pullback around 5100-5120 levels. A sustainable move above 5120 levels will lead positive bias in our view. Overall, the bias seems to be negative as long as Nifty hold below 5120 levels which will open the possibility of violation of 5000 mark in our view.
(..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.
The level of 5090 will acts as trend decider level for the day. A sustainable above this levels will lead intraday pullback around 5120 levels in Nifty. However, failure to hold this levels will trigger further fall in Nifty.
Support: - 1) 5060 2) 5020 3) 4980
Resistance: - 1) 5120 2) 5160 3) 5200