As we seen in last week nifty has done some consolidation in falling direction, so what this consolidation is meant for??? Is it for upcoming bounce or more correction market is willing to give??? See what levels and charts say and work accordingly.
As last week we mention that, nifty having important resistance level at 6150 level and only crossing this level will lead for next up move, below this we mention a level of 5900-5750 and nifty halted at 5811 level, hope you enjoy this levels.
At present market given 1/3 correction from its last rally of 1000 points, so as per current levels we can see that 5750 is highly important support for market now in this week, if able to close below this levels then we can see further fall till 5650-5500-5400 levels. If any case if market take support here between 5750-5800 and able to give positive closes on chart then this will indicate of reversal of trend again in original direction and which give movements till 6000-6150-6300 levels.
So overall indication is till the market is not giving close below 5750 levels one can stay long in market or buy near support with small sl’s and wait for upper targets, going below and closing below this level will give a fall till 2/3 and full correction in market, so closing below 5750 will give us more clear selling opportunities.
As per the technical chart we can see that there is a development of “INVERTED RISING WEDGE” which is expanding in nature so if market able to take support at this wedge bottom then we can expect a new high in our market also, closing below wedge level will generate sell signal.
As per candlestick it has given a “BEARISH BELT-HOLD” candle in last session which also indicates that 5750-5800 range is highly important for nifty in concern with trading and next signal development.
RSI just moved below its support level buy yet price as not given any new level below 5800 so overall consideration is price still having ability to drag the rsi in overbought zone again. So watching the price action for next two session will give us a clear direction.