Nifty closed in green at 5114 levels with gains of 28 points on the cards.The nifty opened with a gap down following strong negative global cues.A lot of global turmoil will our markets be facing in coming days.After the gap down opening markets started playing a muted show,then came some relief in the afternoon on the much discussed GAAR issue.The GAAR has been deferred for a year.Markets heaved a sigh of relief leading to climb the ladder.The markets stood partially in the favor of the bulls with 783 advances to 672 declines.
The initial gap down opening and close above 5100 lead to the formation of piercing line pattern.This pattern is likely to show its effect as one more thing goes in its favor,that markets sustained the 5080 level i.e. 50 % retracement level.I would like to strongly mention here that ,there is a fear of 4950 but hopes are likely to keep markets afloat the 5080 levels for few days.
Here i would also like to mention that with the MACD indicator closely ,the crossover working out here is not a sign of strong reversal.Hence we need to be very much cautious,since the coming days will clearly reflect as to who has the dominant hand.With today's session people are expected to reverse their position to long,we could also follow them for some intraday gains.
Moving forward we are likely to face resistance at 5211 levels ,here traders are expected to become more vigilant.In the view of the global frenzy choppiness in the markets is a no surprise thing.
The initial gap down opening and close above 5100 lead to the formation of piercing line pattern.This pattern is likely to show its effect as one more thing goes in its favor,that markets sustained the 5080 level i.e. 50 % retracement level.I would like to strongly mention here that ,there is a fear of 4950 but hopes are likely to keep markets afloat the 5080 levels for few days.
Here i would also like to mention that with the MACD indicator closely ,the crossover working out here is not a sign of strong reversal.Hence we need to be very much cautious,since the coming days will clearly reflect as to who has the dominant hand.With today's session people are expected to reverse their position to long,we could also follow them for some intraday gains.
Moving forward we are likely to face resistance at 5211 levels ,here traders are expected to become more vigilant.In the view of the global frenzy choppiness in the markets is a no surprise thing.
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