On Tuesday Nifty achieved our target levels and closed below the crucial support level i.e. 7540, indicate ongoing selling pressure will continue into the market. Market continue its negative for second consecutive trading session closing at 7510.30, down with 53.55 points.
Technically Nifty closed below the neckline of a bearish Head & Shoulder pattern and also below its major support (7540), if nifty continue closed below 7540 for at least 2 trading session, most possibility index will extend its legs towards 7400 levels, which is the next support level, further 7100 levels.
Tracking Bollinger Band Nifty is ridding the ‘Lower Bollinger Band’ and also the bands are widening, indicating negative view. Momentum Oscillator RSI & MACD is also moving southward direction, which add more bearishness for the index.
For Bulls to come back for short term, Nifty have to close above 7560, which would provide a pullback rally in the near term.
For today, Nifty is likely to continue its fall towards 7400 levels. On the other hand, 7680 will act as an resistance levels.
Intraday Trader:
Day traders can trade the market on the downside till 7450, for intraday levels, kindly refer to Today's Trade section.
Positional Traders:
The intermediate trend on the index still remains down, for the ones who have built short positions on Nifty; they can book part profit or revised their stop loss to 7720 levels, on a closing basis. For those who are yet to take a short position, we suggest them to build around 7520-7540 levels.
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