Nifty Update

NIFTY DAILY CHART :

Nifty has inched perilously close to 6100. Views on the street are divided as to whether Nifty will cross the 6100 mark or not. Let's take a closer look at Nifty's roadmap ahead.

Nifty has reached a major resistance near the 6080 zone. 2 very important trendlines meet at the 6080 - 90 levels. One from the top of 6300 and one from the bottom of 4500. Both these trendlines converge at the 6080 odd levels. It can also be seen that Nifty is moving in the Purple band whose upper value comes near the recent top of 6300. This channel however will come into play only on break above the recent top of 6112.


Now lets take a closer look at the chart as to why the 6080 level is extremely crucial.

If Nifty closes in the negative in tomorrows trading session & further if it closes below 6020 which is today's low and a recent high, as depicted by the horizontal Orange line then Nifty will form a pattern called the EVENING STAR. Formation of this pattern after such a one sided rally and at such high levels will be sufficient to act as a trend reversal pattern in Nifty. It will be worthwhile to note that Nifty had formed a similar pattern at the recent top of 6112 before falling all the way to 5500. (encircled and shown by arrow)



NIFTY WEEKLY CHART :

As can be seen, 6080 is an important resistance zone even in the weekly time frame.


So to sum it up, 6080 - 6110 band is extremely crucial. Above this, Nifty can make a sharp upmove towards 6300 level & staying below this Nifty can reverse it's current trend.

Any signs of weakness in tomorrows trading session can be taken as a Low Risk High Reward shorting opportunity.


SHORT NIFTY Futures @ corresponding 6080 spot levels with sl at 6120.

Alternatively,
BUY NIFTY IF breaks above 6120 levels with sl @ 6020