Nifty - Ball Is In Bear's Court

Nifty (cmp: 6012.1): The action formed a strong negative candle with high volume which indicates bears are in active. Technically, the index has tested the upper pitch fork line and fall sharply with high volume which suggest selling pressure in coming days. The day before yesterday gap has almost covered and now the index is trading above the crucial support level i.e. 5925 which is rising trend line support level. If that trend line support breaches then it’s likely to test towards 5750 – 5640 levels which is 38.2% - 50% retracement level is taken from 5118 – 6143 levels. Unless violation of 6170 the trend remains down and the strategy will be at sell on rise. The hourly oscillator shows multiple leg of negative divergence which signifies weakness.