Hello,
With US futures / European markets leading the way Nifty came out of the range it had been contained to for the last few days but since US markets which were strongly negative (Futures) when we closed, closed strongly positive a rebound is sure to happen. The key question is as to whether this fall should be taken as a shakeout wherein weak bulls are taken out or are we truly in the beginning of a downturn. A confirmation of this can happen if we see a secondary test of the shakeout on lower volumes.
On the positive side, Nifty did not break the support at 5335. Infact we came very close to breaking the previous week's low but stopped just short of it. Hence technically we are still not yet in Bearish territory even though the bears are sniffing a opportunity to attack. On the negative side, Nifty once again tested the 5410 level and could not hold on. Multiple tests without the ability to break confirms that there is huge supply zone at the higher levels and hence the inability of the markets to break higher ground.
Support & Resistances for Nifty remain the same as yesterday.
Regards
Prashanth
Mythri Stocks & Shares Pvt Ltd.,
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