The Nifty move today (May 22) was interesting.
It opened in down Gap and remained weak during the entire day. On closing it took support near the upward channel support line on daily charts - placed at 5005( Nifty made a low of 5010 today).
The weakness as suggested by the MACD is restraining prices from showing upward momentum and hence we need to watch the support line carefully a break below 5000 now should be treated negative.
Also if you remember the Pivot points for this week was at 5080 which should now act as a resistance level ; while the support level S1 (based on Pivot) was at 4992 which too is very near now.
My perception is that a break below 5000 especially on closing basis, will lead to a downmove throughout the remaining of the month - at least till derivatives expiry.
Happy trading !
CA Rajiv D Khatlawala
1 comment:
Sir you did not highlighted that Nifty also crossed below 34 day EMA today and after tomorrow's confirmations(Filter criteria), one should short on Nifty?
What are the targets for taking profits on Short?
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