Two days back I have updated that it cannot be good to hold short if NIFTY spot manages to stay above 4801 levels.
Next obvious question is about the magnitude of the rise. We are just on the verge of 50 days moving average which is running near 4877-4876. Charting suggests that we will see stiff technical resistance near those levels. Thats the reason I have quoted tomorrow that it may not be easy for NIFTY to move beyond 4880.
From the levels of 4876- two possibilities arises.
Possibility 1 (Bullish) : If we manage to stand above 4880 then we can expect rise to be extended towards 4940-4949, which is 100 days moving average and the higher end of gap fill which is indicated in the given chart. In the bullish possibility, Nifty must break 4880 (this condition is to be applied above 4880 only) and then try to hit 4940-4949. We may expect consolidation in those ranges before shooting upwards with great denial for any fresh fall.
Possibility 2 (Bearish) : This possibility will arises on the failure of 4880 or you can say on the failure of bulish possibility. We are already trading close to 4880. Charts suggests that to be on safer side one should opt this possibility only when Nifty sustain below 4801, which is nothing but previous breakout point. We may see some consolidation below 4801 and then a fall. Major support will run near 4680 levels which can be a concluded target.
Its still hard to believe the beginning of sharp rise before quarterly result. Let us see. Today is also an important day.
If you want to know more details then mail me at praveen@viecapital.com
Thanks,
Praveen Kumar
No comments:
Post a Comment