We seen good fall in our market in last session and even world markets are in a falling mode as of now, nifty face resistance at 6350 level for almost 5 times in a month of January 2014, and which not a good start for New Year we assume.
Market fear to cross 6350 this month clearly indicated that some fall is surly expected, but bottom side it has taken a support at 6100-150 level for 5 recent weeks.
so 6100-6350 is a range of fear now for bull’s as well as bear traders, fearless entry can come after these levels only.
From almost past few weeks we are reminding you that market having a strong resistance at 6350 level, and we even try to give you the example of year 2008 fall.
As we mention last week that market will try to touch the resistance at 6350 level and from there it will try to fall again until in not give close above that level.
Now with current week chart development, we can see that market unable to move above “ASCENDING TRIANGLE” on chart and from there it face the resistance and able to come down below the support level of triangle limit.
Las time it has taken a support on extended support line on chart, at a range of 6100.
So now price will try to take support on “DESCENDING TRIANGLE’S” upper level or lower level.
Now look at the rsi, even rsi face the resistance with price and not able to move above the resistance level, and even able to break the support on chart now.
So overall price action from last trading session inform us that market moved into the bearish mode now, and it might try to take support on trend line levels at 6220-30 range or after that directly at 6100 level. But any green candle on this support can only give hit of bounce before that we can’t expect any recovery.
For coming week, we can see nifty support at level 6230-6180-6120 and resistance at 6300-6350 still.
So bottom line is nifty having a good support near to 6100 level and good resistance at 6300-6350 range, so this both point will work as a reversal’s till the time market not moving beyond them and closing for 2-3 session. Beyond this range it will catch the direction.