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 momentum as 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 that case, Nifty’s possibility of testing 5000 mark will remains wide open. )
The level of 5200 will act as trend decider level for the day. A sustainable move above this level will lead rise in Nifty. However, failure to trade above this level will lead fall around 5160-70 levels.
Support :- 1) 5170 2) 5140
Resistance :- 1) 5230 2) 5270