You must read previous articles and
watch above chart carefully to understand this article completely.
Today’s outlook: -
Nifty came at 5641 on Friday but
then bounce to close 23 points higher from intraday low. Low of 5630 was again
very close to 5630 levels so it was another bounce with came from those levels.
It is a much known support now and giving signs that it will not break so
easily. Wave theory is sill hinting that sooner or later it should break on
lower side. Even many technical indicators are also suggesting that the same. You
can check RSI movement on the chart.
It is not that only fundamental is
going to play its role. We have RBI monetary policy review this week. Market is
expecting a lot from those. There is a sense that hope from RBI is saving this
market from any fall. Some might be saying that CRR cut is coming and some
might believe that repo rate cut will come. These are just talks and we need to
see what coming in actual sense. It does not matter what is coming. What it
important is that how can long can those save the technical levels of indices.
We need to remember that our market
has not respond with 3% from of American market. This under performance will
fill up some time. An H&S patterns are suggesting for some lower target but
only if we break 5630. So, technician has again focus on 5630. All studies are
sticking to this point. It seems that Nifty is in Bermuda triangle where it is neither able
to find direction nor able to move out.
If you remember, I have discussed
about a triangle on Friday. Yes, that ascending triangle has broken in the
expected way. It is suggesting for a dip. I am getting a hint that even after
bounce, this market has to move lower by later this week only.
Conclusion for today – It is hinting
for flat to positive start. Technical resistance will emerge at 5700 to 5730
levels. I am also tired of waiting for the break on any side. So let us watch
for the break. Do note that 5630 is a ‘make or break’ levels.
Regards,
Praveen Kumar
