Nifty ended marginally positive despite gap up opening. After strong opening at 6015 levels , Nifty could not maintain the strength as investors booked profit at higher levels. Finally Nifty closed with 16 points minor gain at 6009 levels.
On daily chart, Nifty has formed a Red “counter attack” candle with higher lower tail after two successful rising gap. The presence of this candle indicates that market may see intraday correction in an early trade. In case, if Nifty fails to hold above 6020 and remains below 6010 levels then it will see intraday correction into the 2nd gap area around 5970 levels.Any trade below 5970 levels will lead further downward move into the 1st gap up area. On the other hand, if Nifty succeeds to hold 6010 and sustain above 6020 levels then we will see continuation in rise. In that case, Nifty will test 6045 and above that 6080 levels in coming trade. (Remember, Nifty has achieved minimum requirement of 5970 levels as a proportion of 80% correction of previous move “D’ble combination. As per rule it can go up to 101% which arise above 6335 levels but not necessary. Therefore, traders are advised to be cautious.
The level of 5960 will act as trend decider level for the day. A sustainable move above this level will lead continuation in pullback around 6040-6080 levels in Nifty. However, failure to trade above this level will lead further downward move.
Support :- 1) 5970 2) 5940
Resistance :- 1) 6010 2) 6040