Market Update
Harsh Patel
Founder
Nifty open at 25550, bouncing form Tuesday's fall to 25327, as US markets bounces. A corrective bounce or reversal in Nifty, should you buy the Dip or Sell on Rise?
Nifty Daily Chart
Support levels: 25350 Resistance levels: 25600
Nifty made low of 25327, breaching 25400 as expected on Tuesday’s expiry, however it closed above 25400. On the daily chart while 25300-25400 looks like a clear inflection point, on the hourly chart the consolidation is rather more complex, showing a falling channel and small triangular consolidation with a flat support at 25400, which was breached but not decisively enough.
Technically, a bounce back to 25550-25600 may provide a selling opportunity, market may consolidate in declining range to 25300-25500 for 2nd half of the week with overall negative sentiment.
A breach below 25200 or a close 25300 may increase selling intensity for a target of 24800-24500 near recent lows.
Hourly Chart
Tradzo maintains cautious view due to global macro-economic scenarios and to reduce weak long positions due to higher valuation and slowing earnings growth.
Tradzo Research
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