The session ended with a “Bearish Candle” indicating failure to sustain the positive momentum. Yesterday, Nifty didn’t performed on our expected line, However, our half an hour rule was spot-on to identify the intraday trend. With the mixed international cues our markets opened on a flat note and it went sliding down to test the low at 5438 and respected our second support of 5436 before closing the session at 5447 with 53 points loss over previous day. Since last three days the session has become a battling ground for both the camps (Bulls & Bears) which resulted in one day positive and other day negative. This indecisiveness created frustration among the market participants and keeping them away from the trading activity. Today being the judgment day on the RBI monetary policy, market is poised to indicate a clear trend from the range of 5520 and 5436. On the oscillator front RSI had drifted lower with a weak signal which will accelerate the downfall if Nifty closes below 5436. The advance-decline ratio was in the favor of declines with lackluster volumes.

In the current scenario, traders are recommended to take clues from our half an hour rule while trading in Nifty. Overall, since last two week the bears are having an upper hand on the momentum creating hard time for the bulls. Hence, a close below 5436 in Nifty would trigger fresh round of selling and may drag Nifty towards the swing low of 5328. On the back of weak International cues our markets are expected to open on a negative note and could trade volatile at lower levels. Therefore we suggest traders to first take a clue from first half an hour range in Nifty and then trade accordingly in the direction of the breakout with strict stop loss. Intraday support levels are placed at 5413 and 5356 whereas resistance levels are placed at 5477 and 5520. Add a comment…