Nifty outlook – Near support zone
Nifty opened flat and after initial
volatility pulled back to previous support of 5900 (which acted as res) but did
not manage to sustain and fell to mentioned level of 5830. Even 50% retracement
held momentarily and nifty drifted to 5787 to close at 5798. With all the
momentum indicators still showing downward price movement nifty can fall to the
next retracement level of 61.8% which is 5765.
Going forward if nifty reaches level of
5765 it is going to get good support at upper
range of gap that is 5765. Infact this
whole area of 5765 to 5700 is going to provide
good support for nifty.
Another factor that is giving importance to
this level is that Weekly chart suggests that the downtrend in nifty may also
get support from rising trend line.
Unless this trendline is broken we may see
nifty trading in the range with upper trendline giving resistence and lower
trendline providing support.
One can look to buying opportunity near
5765 for move back to 5900.
Nifty Daily Chart
Nifty Weekly Chart
