Post breaking out from the oscillating range Nifty has been gradually crawling higher maintains its lower shadows above its previous days low. As the index lacks the desired momentum which should have been witnessed post the breakout so far the only sigh of relief is the rising sequence of higher bottoms along with the rising RSI which is still away from its overbought state. It is likely that a sustained close above 10855 could regenerate the bullish momentum & push the index towards 10930 /11060 zone. On the flipside a breach below 10770 could push it back into the mean reverting range of 10770-10630 & hence serves a trail stop for any longs so far. Traders are advised to remain cautious & aggressive positions would be warranted once a firm close is established above 10930 or below 10770 from here on.
CMP: Rs 1,219
Double bottom formation on the daily scale followed by an impulse. The Occurrence of multiple dojis near the 61.8% retracement support of its prior Impulse (1085-1235) augurs well for a higher established base for the next impending upmove to be witnessed soon. Trading longs could be considered with a stop below 1196 & an initial target upto 1315.
CMP: Rs 108.50
‘Falling Three’ candlestick formation on the daily & weekly scale exhibits the weakness to persist further. Rebound from its 200 DEMA near 114.10 compliments the setup & serves a stop loss level for fresh shorts with an expectation of a move towards 98.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.