Today after 11 am after RBI policy nifty has given sharp movement, but many get confused with trend, because RBI policy was unchanged but why nifty given a breakout kind of move, we given buy @ 5785 and it given sharp rally from there.

Just know why it move like this?

Technical study – If you notice nifty’s intraday chart we can clearly see that it has created positive divergence on chart and exactly on bottom it has given buying signal as RSI was also touched the oversold zone, and this is the reason we seen sharp movement in nifty for the day.

this divergence lead nifty to move till 5832 level, where it touched the overbought zone of RSI, but again just have a look at the chart, after this signal nifty has given divergence signal again, where as RSI was falling but the price was on top so this sitiautin lead for clsoing at high levels in nifty today.

Intraday View for nifty 18-6-2013

As per the todays move, if nifty open gap up tomorrow 20-50 points then RSI will directly go into oversold zone again, so according to indication if nifty able to sustain its gains for 1hour trading session then only we can see upside levels at 5880-5935-5950 also and closing positive for the day can give us a hint about starting in uptrend again, but after opening in oversold zone (RSI), nifty not able to sustain its again for the day then downside we can expect a major support at 5835-5790 level. If nifty fall till support then we can expect a bounce from there, but if it not able to maintain its support level then we can possible think of trend reversal from here.

According to levels and time nifty can consider 5825-5935 trading range for the day, We wish that all trader should trading near important support /resistance level for higher gains with minimum losses.