At the end of
volatile session nifty gained 37 points. It has yet to give any topping signal.
One reversal pattern was developing in the intraday chart but did not complete.
It was projected that nifty can pullback to 5680 levels. But looks like bulls
are in no mood to give any opportunity to bears to pull the index down. There
can be two scenarios which could be inferred from this.
One scenario
is the current view that market can pull back till 5810 and can again fall
below 5480 and we achieve the targets of 5130 and 4750 (H&S). The same was the case with Banknifty as it
brokedown from 11650 levels. At 5810 nifty will get resistance from the same
trendline as well as this level is 50% retracement of fall from 6100 to
5500. Problem with this view is that on
daily charts RSI has come out of oversold zone and has given buy signal 3 days
back. On weekly chart RSI has taken
support from the same level from which recovery came in the past.
Nifty Weekly
Chart
Banknifty Weekly Chart
Another scenerio
is that nifty is in the process of making larger triangle and this is a
consolidation phase before market gives breakout from resistance line or
breakdown from support line at 5480 levels.
Nifty Weekly
Chart
In any case
5480 is going to be a trigger point for any breakdown. For now will wait for
the nifty to take out 5810 on the upper side to confirm the alternative view.
Nifty Sup
: 5700-5655 Res : 5765-5790
