Good news – sell at upper levels – market fall
Bad news – buy at lower levels – market rise
Good news expectations – buy on deeps – market rise – after news coming – sell at higher level
Bad news expectation – sell on every rise – market falls – after news coming – again buy at lower levels.
So ultimate intention behind this is news always gets discounted on expectation of traders, so majority of time movement after news is always contradictory in nature.
Last week as we mention that due to important even market can give big jump, and also mention that if it able to give red bar closing on chart near to 6350 level, then we can see fall in market.
See what happen exactly nifty given a red bar on chart at 6360 level, and from there it given a fall for whole week till 6160 and we mention downside support level of 6150 made exactly near to this level.
Now with the current chart development we can see that price has just touched the support line on chart which is drawn from 5100 level.
Rsi still not able to touch the support level and still having gap.
So as per current chart development we can see that there is still some support at in a range of 6150-6100 range and if market able to sustain this support then we can see some up move from here, but if nifty able to give close below this range for 2 session the we can see fall till 6000-5900-5700 also.
If any case market give green bar on chart near to 6100-6150 level then upside we can still hope for 6250-6350-6500 levels in coming time.
Overall we can say is on Monday if nifty able to touch 6100-6150 and if able to give green bar on chart here then one can think about long position build up with very small stop loss. If market move below this range then only try to build up fresh shorts.