Hello, I am going to present views based on two charts. One is a Nifty daily chart and the other is an hourly chart. Let us first discuss the daily chart conclusion.
Referring to the above chart, this rise came from the support of 50 SMA. Normally, this is confirmation that the market is taking support. Let us assume that Nifty took support. Now, the most impressive is MACD setup right now. This is the factor that I cannot ignore and gives the edge to bulls. Another assumption is that suppose if Nifty starts hitting the upper band of Bollinger band then this rise can go sharper. Well, that condition has yet to fulfill.
Now, let us discuss Nifty hourly chart where we have just wing swings.
Well, 19600 is the level which is almost 50% retrenchment against fall. This should be the breakpoint to convince bulls to emerge stronger. As long as it is close and below this level, caution is needed. The way it has closed in the last session it is very much visible that buyers are present at lower support levels. Remember, on Monday it took support at 19430, and on Tuesday it took support at 19520. Based on the hourly chart, I suggest 19600 as the crucial break point.
So, now what is left for bears?
Unless Nifty goes below 19500, do not attempt shorting from any levels. If fall comes then it will definitely will be a surprise.
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