Today bulls have shown that they are not ready to give up. After losing
ground in Monday’s trade bulls has shown the strength & bounced
back on Tuesday. This time, the nifty future came close to the 10750 level
before erasing the losses of entire day to settle in the black, suggesting that
the bulls were not in a mood to give in easily. For the day, the nifty
future ended up rising 73 to 10731. Nifty future has opened from 10645
made a high of 10733 and low of 10630. Total 103 points nifty future has moved
in intraday.
On the weekly timeframe chart, the Nifty formed a small-body positive candle
with a minor upper shadow. This pattern indicated rangebound movement in the market. A low of 10750 could now be considered as a
new higher bottom of the sequence. After forming a lower shadow in last three
weekly candles, the Nifty future has formed a minor upper shadow, which is signaling
the presence of a strong resistance at its high. Nifty
future has withheld support near the 10600 level. We continued to be positive in
the market as long as Nifty sustains above the 10700 level. The index has
been making higher highs and higher lows for last few days and a hold above 10750
level would be important, if Nifty has to move higher. Unless the index closes
above 10850, the bulls will not gain an upper hand. A breakout is needed for
them to reach safe shores. A close below 10650 shall re-establish the supremacy
of the bears. Traders are advised to remain cautious. More about intraday tips on Google +
Resistance: 10750, 10800, 10850
Support: 10650, 10600, 10550
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