MARKET SYNOPSIS
With NIFTY closing above 5200 on friday has kindled some hope in the heart of investors and technical advisors that now it is taking support around 5130-5140 levels and whenever it falls below 5200, Nifty immediately strive to raise its head above 5200.
It is taking support at 5130-5140 levels for quite sometime . Reason behind it is that its 200DMA falls in this zone.
Since on friday NIFTY closes above 5200, and there is a positive divergence emerging on the chart showing that NIFTY has the possibility to move up. But this upward movement is not so powerful. It will generate power only if NIFTY manages to remain above 5275 level. First resistance is 5248 and then 5275 as shown by the chart below.
NIFTY is making a falling wedge pattern. So, it can maximum move upto 5270-5280 levels only. If it manages to cross above 5270-80 levels then there might be a possibilty that NIFTY may breach 5350 levels. But if fails to sustain itself above 5335 levels then it is better to go short at 5335-5350 levels with strict SL of 5362.
With NIFTY closing above 5200 on friday has kindled some hope in the heart of investors and technical advisors that now it is taking support around 5130-5140 levels and whenever it falls below 5200, Nifty immediately strive to raise its head above 5200.
It is taking support at 5130-5140 levels for quite sometime . Reason behind it is that its 200DMA falls in this zone.
Since on friday NIFTY closes above 5200, and there is a positive divergence emerging on the chart showing that NIFTY has the possibility to move up. But this upward movement is not so powerful. It will generate power only if NIFTY manages to remain above 5275 level. First resistance is 5248 and then 5275 as shown by the chart below.
NIFTY is making a falling wedge pattern. So, it can maximum move upto 5270-5280 levels only. If it manages to cross above 5270-80 levels then there might be a possibilty that NIFTY may breach 5350 levels. But if fails to sustain itself above 5335 levels then it is better to go short at 5335-5350 levels with strict SL of 5362.
