Nifty ended marginally positive despite 22 points gap up opening. After strong opening, Nifty could not maintain the strength as investors booked profit at higher levels ahead of Tuesday’s Christmas holiday and Thursday’s expiry of December Derivative contract. As a result, Nifty slipped down and registered day’s low at 5844 levels, maintaining Fridays low( 5842) and finally closed at 5855 levels. It made a days high at 5871 levels.
On daily chart, Nifty has formed a Red “in body” candle with higher lower tail called “Harami black”. The Japanese definition of this candle means pregnant woman. The presence of this candle indicates that market may see pullback in an early trade but only stable move may change the direction of the market. In such a scenario, the levels of 5840 on downside and the levels of 5880 on upside remains important levels to watch for the day. In case, if market holds and sustains above 5880 which is acting as important resistance for the day then we will see continuation in upward rally i.e. above 5880 levels it will test 5920 in coming trade ( remember, stable move above 5920-30 levels will diminish bears power which will lead 5980 levels.) On the other hand, if market fails to hold and remains below 5840 levels which is an important support levels for the day then it will see further fall. In that case, Nifty will test 5760-70 levels in coming session in our view. Overall, bias seems to be negative upto 5770 levels as long as Nifty holds below 5920-30 levels.
The level of 5840 will act as trend decider level for the day. A sustainable move above this level will lead pullback around 5880-90levels in Nifty. However, failure to trade above this level will lead violation of 5800 levels in our view.
Daily
Support :- 1) 5820 2) 5770
Resistance :- 1) 5880 2) 5930
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