Yesterday Gap up opening at 15860 & immediate High was at 15881 but after 10.30 am correction started failing to cross crucial resistance area 15900. Though 1st fall took some halt at 15825 level but fizzled out around 15850. Then in 2nd phase deep fall actually started below 15825 & 15777 that erased almost last 3 days all gains & low printed at crucial level 15700 then vertical bouncing upto 15777 but failed to sustain there & was range bound in between 15700-750. Nifty finally settled at 15746, down by -78 points.
We can see a good move again but range-bound trade to continue unless the index decisively breaks on either side of the range 15600-15900 which one is continuing for last 30 trading sessions.
The index formed a long bearish engulfing candle on the daily charts after day before yesterday’s insider bar candle which resembled bear action below 15825/800 & specially below 20dma 15777.
On the down side :- Bears are waiting for the target of 15650 till below 15825.
Negativity started below 15850/825 & that to be negated if any pull back sustains above that. Otherwise, for today more bear action if fails to cross 15777 & stays below 15725 & 15700 for the expected lower slab of 15666/650 <50dma >.
As 15650 is a 50-day simple moving average so bulls still have a chance to come back from 15650–15595 levels. 15650-595 may be a whipsaw area. If bulls fail to hold this range & selling pressure continuing then that to be extended upto 15565-15535.
On the upside :-
Bulls need to move above 15850 for a move towards 15880/900—15930/15962 & then as break out 16025/16077.
Options data indicated that the Nifty could see a broader trading range of 15600-15900.
India VIX moved up 6.29% from 12.45 to 13.23.
Source : Eureka
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