Technical explanation of todays intraday movement in nifty (for STUDY PURPOSE)
When I seen todays nifty’s chart development, I must say its a magical chart and nifty totally moved according to its plan. Many traders and other (even my self) have thought that nifty doing unusual movement, but have a look at the chart, its a self expressive.
Today we given nifty buy above 5795 with 5770 sl and nifty done movement till 5830 almost, just see if you notice RSI it was clearly in oversold zone today, so as i posted yesterday after a gap down nifty will get support at 5790-5770 levels and just see, it exactly reverse from that level, it was a case of BULLISH CONVERGENCE today as RSI after coming out from oversold zone able to break its recent high, but market not able to make a new recent high on chart (at 5795 level) but see as soon as it broken 5795 level sharp breakout was done.
after this signal nifty shown some downfall also, but yet the signal was not reverse as RSI as well as NIFTY chart both was taken recent low support and given a bounce from there. and see again when it able to cross the resistance trend line on chart, after that it has done only one way movement. and each point taken a support of demanding trend line at bottoms.
so as per the todays intraday chart of nifty, it was in buy after a 1st hour of trading and after that it has never given any trend reversal signal on chart for the day, all other small fall’s was corrections for intraday, in yesterdays report we already mention that 1st hour is very important and after that only movement can be seen, and it exactly happen like that.
NIFTY VIEW FOR 20-06-2013
IF GAP UP – tomorrow if nifty able to open GAP UP and able to sustain this gains for 1st 15-20 min then we can see upside levels of 5850-5870 and above 5870 if sustain for 15 min then breakout to consider which can lead for 5910-5950 also. still intraday development of chart need to consider while looking for breakout.
but if not able to sustain gains after gap up for 1st 15-20 min then we can see support at 5810-15 levels and after that can try to go in 5790-5770 range. again i am saying major breakdown can be seen if sustain below 5770 for 30 min or more. Panic low can lead for bounce back.
IF GAP DOWN – after a gap down if nifty not able to break its low for 15-20 min then we can see movement till 5830-5850-5870 level, major breakout to be consider above this levels only.
if it breaks the 15-20 min low after a gap down opening, then again supporting range would be 5770-90 and after that only we can consider major movements.
over all chart indicate that if nifty able to sustain gains for 15-20 min tomorrow then we can see upside 5850-5870-5910 also, but if not sustain gains then we can consider 5790-5770-5740 supporting levels.
we can consider trading range for the day between 5810-5870 beyond this range major trend reversal should be consider.
above view is the out put of studying old data, real time out put and movements can be different also, depending on intraday position development in a market.