Nifty - Well Begun Is Half Done

Nifty (CMP: 5999.05) - The action formed a falling window candlestick pattern with high volume which indicates continuation of bearishness. Technically, the indices are now close to the mentioned updated support/target of 5970, which is hugely important. If the support level of 5970 breached, then index will fall further towards 5900 – 5850 levels. If failure to sustain below 5970 levels, we may see minor bounce back up to 6070 – 6100 levels. Use the rise as selling opportunities. The daily oscillator’s has given negative crossover, but the hourly oscillator’s are placed in oversold zone which indicates minor bounce back can be seen in intraday.

Recommendation: Overall, unless violation of 6215, trend remains down. Traders can start book profits at short positions or revise stop loss to 6030. Fresh traders can wait for a rise up to 6070 – 6100 levels & use that rise as selling opportunities for the target of 5900 – 5850 levels with a stop loss of 6215 (closing basis). Strategy will be at sell on rise.