9:33 AM
Unknown
NIFTY opened gap down and weakened towards the
support level of 5496 initially. However prices recovered
later in the session and settled at 5526 with a loss of
nearly 90 points.
The 14-day RSI is trending down and is just below the
equilibrium while the momentum in the very short-term
Stochastic (5/3/3) is still weak.
Also on intraday charts, prices haven’t shown any signs of
exhaustion/reversal yet.
Hence break below immediate support near 5506/5496
could aggravate the selling pressure and extend current
weakness towards next support near 5400 levels (61.8%
retracement for the rise from 5196-5740) in the
subsequent sessions.
On the upside, 5550 acts as immediate resistance. Only
an early break above it will invite a minor upside recovery
in prices delaying the expected weakness.
Sell NIFTY below 5505 with stop of 5542 for a possible target of
5440
