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Showing posts from July, 2012
We were watching 5220 level as an important level for the day and were expecting fall around 5160-70 levels once it fails to hold. Nifty slipped below last four day’s low at 5181 levels despite opening higher by 31 point. After opening higher, Nifty restricted its trade below first resistance level by recording day’s high at 5236 levels and fell down at main psychological level of 5200 mark. From that level, Nifty tried to rise but failed and slipped down at 5181 levels. At the end, Nifty closed at 5192 with minor loss of 4 point. Nifty has formed another bearish candle but with almost equal upper and lower tail, implying equal force of buyer and sellers. This could be indicatives of temporary pullback from lower levels. In this case, the level of 5160 which is acting as main support for the day as previous “rising” gap area remains important to watch. On fifth Fibonacci day, if Nifty succeeds to hold and sustain above 5160 levels for the day then we will see rise in Nifty. In that ca…
We said that if Nifty fails to trade above 5240 and remains below 5220 levels then it will fall down below 5200 at 5160-70 levels. Yesterday, Nifty opened higher but after testing days high at 5246 levels, it could not maintained the momentumas a result it slipped down below 5200 marks at day’s low at 5190 levels. At the end, Nifty closed with 30 points loss at 5197 levels.

On daily chart, Nifty has formed another bearish candle with higher upper tail indicating selling pressure on higher levels. This indicates further weakness in the trend. In case, if Nifty fails to hold above 5220 and remains below 5200 then weakness will persist further. In that case, Nifty will see fall around 5160-70 levels as we said before. On the other hand, if Nifty manages to hold and sustain above 5200 levels then it will lead pullback at 5230 levels.
(Over all…. The bias seems to be negative as long as Nifty remains below 5300 levels which is acting as important resistance levels as falling gap area. In th…