9:33 AM
Unknown
Yet another volatile day for Nifty as the index opened gap
lower and traded within a broad range of 4946-5167
before ending the session with a loss of 46 points.
Prices have recovered more than 200 points from lows
and have shown resilience to fall yesterday. However
further follow through buying above the immediate
resistance zone of 5167/5204 will be required to confirm a
turnaround in sentiment and invite any meaningful upside
recovery.
Until then the prevailing weakness is considered to be
intact and prices could re-test the support at 5011 and
even yesterday’s low of 4946 in the session ahead.
Momentum in the very short-term Stochastic (5/3/3) and
the 14-day RSI is still weak indicating the same.
Overall, last couple of weeks fall seems stretched and
short-term oscillators have moved into oversold territory.
Hence a decent recovery seems likely in the days to come
however confirmation from price action is awaited.