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 case, Nifty will test 5250 and above that 5280 levels in our view. On the contrary, if Nifty fails to hold and remains below 5160 levels then it will continue the downward correction around said area at 5050 levels in coming session.
(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 5160 will act as trend decider level for the day. A sustainable move above this level will lead temporary pullback in Nifty. However, failure to trade above this level will continue the fall.
Support :- 1) 5160 2) 5120
Resistance :- 1) 5230 2) 5270
Support :- 1) 5180 2) 5080
Resistance :- 1) 5300 2) 5400