Today it was highly volatile day, but market has given many opportunities for intraday traders and seen some wild moves in option index.
todays chart study –
due to some internet problem we not able to post call in nifty today, but nifty was just king today on intraday chart.
as inform yesterday nifty may look to fill up gap either upside or down side, and also inform that it close near resistance level, so gap up opening can give some breakout moves, and just see it happen something like that only, market able to open gap up today, and almost after 45 min of trading it started its up move, where it given the positive divergence signal in the morning. after a signal nifty given quick 50 point movements.
after entering into overbought zone nifty again created a signal of negative divergence on chart and given a sharp fall after that, which was confirm by breaking the supporting trend-line for the day.
after a such big and quick fall nifty again enter into oversold zone and from there it started to reverse and it was again a positive convergence signal on chart, as it was a bigger period convergence signal so it we seen some quick moves on index today.
by the closing we slightly spotted negative divergence signal again but till it not breaking the support line we can sure about this divergence.
NIFTY VIEW FOR 5/7/2013
IF OPEN GAP UP – as we can see on today chart nifty given close with inportant divergence signal, so if able to open gap up and sustain up side for 1 hour then we can see some positive breakout upside. we can consider 5885-5910 important resistance levels upside. if not able to sustain after opening upside then we can assume 5850-60 important support level below this we can see 5810-5780 support levels.
IF OPEN GAP DOWN – if market open gap down below 5830 level and if sustain for almost 30 min, the we can see down side level sof 5810-5780 level soon, upside we can consider 5850-60 major resistance range for the day, above this we can see 5885-5910 level also. if not able to sustain down after opening gap down the we can see that 5860 is important resistance level for the day, if cross this level then we can see some up move in market.
over all day consideration – according to levels we can see 5810-5910 important trading zone for market and if able to cross this levels and sustain for 1 hour then only we can see moves in particular direction.