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Nifty
Trend
Support
Resistance
7823
Up
7700
7950
Current Observation:
After showing declines in the last 2-3 sessions, Nifty bounced back sharply today and closed the day higher by around
106 points.
Nifty opened today with upside gap of around 57 points and started to show upmove soon after the opening. The
intraday dips have been utilized by bulls to take Nifty to intraday swing high levels. The opening upside gap remains
partially filled.
Todays positive range of Nifty was within a high low range of yesterdays negative candle, which is indicating a
formation of bullish harami (inside day) type candlestick pattern. Formation of such patterns after the decline could
be an impending reversal signal towards upside, on its confirmation.
We were expecting the formation of positive divergence pattern in Nifty/RSI, before showing any upside recovery. As
per candlestick chart pattern, the positive divergence has not been formed, but has been formed as per line chart
(closing chart).
We currently observe a type of double bottom formation (or slightly higher bottom formation around 7667 and 7699
levels) as per daily timeframe chart. This is positive development for bulls to make a comeback in the market.
RETAIL RESEARCH
The underlying trend of Nifty seems to have started to turn up and we need further confirmation to believe this to be a
beginning of a strong pullback rally. Hence next upside levels to be watched is around 7930-50 levels in the next couple
of sessions.
One may try to exit short positions in the market and started to build long positions gradually for near term.
RETAIL RESEARCH
RETAIL RESEARCH