Study of nifty chart –
Yesterday ending nifty created bearish divergence on chart, but after a creation of this signal it unable to confirm it and given close near high only, due to lack of time yesterday closing it not able to confirm the reverse trend, but we cant avoid the signal on chart. that the reason we already mention you that if nifty open GAP down then possible support we mention was 5790-5770 and after that we mention that major trend reversal can be seen in market, and just see nifty open big gap down around 70-80 point and immediately broken our final support level of 5740 also, and after that all you know what happen today.
Todays chart also seems to be interesting to study, after a panic opening, no one is ready for more selling for the day (including my self also), so at every point i tried to find some reverse buying signal in nifty, but nifty was not in a mood to reverse today, if we observe todays chart at very first nifty given bullish convergence signal on RSI but same was not confirm as price was not able to move above recent high, final movement also it tried to give positive convergence signal but again it fail to confirm the same and fall down. even a trend line was also suggesting that there is still supply going-on on very smaller up move also.
so overall today nifty not given a single chance to recover, it was a totally selling day only.
Nifty view for 21-06-2013
If GAP UP THEN – as we can see on todays chart that, nifty given close by giving the bullish convergence sign on chart, and yet the signal is not confirm and even it not fail yet. so if market able to open gap up tomorrow then possibilities of confirmation of this signal it it able to cross 5675 level and sustain for 15 min. after that only we can see some more up move till 5710-5740 levels. but if it not able to sustain after gap up for 30 min then we can see down side support level of 5620-5570
IF GAP DOWN THEN – market trading already in weak zone only, so if open gap down tomorrow and able to break then low in 15 min. then we can see more fall till the support level of 5620-5570 levels. but after a gap down opening for any reversal it need to sustain the opening low for at least 1 hour to see any recovery for the day.
over study indicates thats market given close in very weak zone today and if it looking for recover from here then its looking hard work for market now, so we expect trading between 5570-5710 range, and beyond this range only major movements are possible either side.
note – market having long-term trend support in a range of 5500-5600 range, so before taking any position please do proper studies and rather that signal wait for signal confirmation for taking position’s