Nifty may find Trend Reversal above 5850 - Equentis Capital

Technically the market is appears to be range bound in short term, as there could be trading range from 5900 - 5850 on higher side and 5650 - 5630 on lower side for the week. Right now market seems to face strong resistance (expected supply zone) at 5830 - 5850 levels. Benchmark index Nifty closed above its important support of 5690 and closed above all the short term moving averages i.e. 5769(50DSMA), 5856(100DSMA) and 5658(200DSMA), from closing of 5780 we may expect up move till 5830 - 5850 level.

Nifty seems to extend current upward rally till 5933 - 6023 only above 5850 closing, as we are suggesting in our daily technical updates that one should treat this upward move as technical pull back until Nifty closes above 5850. In down side, 5730 on closing basis may confirm trend reversal in the market, one should expect Nifty's down move till its next important trend reversal support of 5680 - 5550 - 5490 below 5730 closing. Nifty may find resistance at 5884 - 5986 - 6178 and supports at 5590 - 5398 - 5296 and daily resistance at 5824 - 5865 - 5936 and supports at 5711 - 5640 - 5599.

Nifty's HEAD & SHOULDER Pattern on weekly charts indicates strong reversal in Nifty from 5830 - 5850 range, pattern still in progress until NIFTY maintain closing above 5850, H&S pattern resistance is the indication of reversal in the market. Prices still trading below its resistance line (5850). The pattern is suggesting corrective move of 4% - 6% points below 5690 (i.e. 200-300 points move).

Technically, we are suggesting that one should start Partial profit booking on every rise above 5850 levels. Systematic buying advised on strong support levels i.e. 5490 (25%) - 5355 (50%) - 5300 (25%).

Source : Equity Bulls

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