Nifty Futures closed below 6120 - GEPL Capital

Nifty Futures closed at 6117 which is 48 points lower than its previous close of 6165.

- Nifty Futures breached initial support of 6120 on closing basis suggesting higher probability of reversing the trend.

The current breakdown is likely push Nifty Futures towards the next support zone of 6030 - 6020. The current two consecutive negative closings in Nifty Futures is the sign of exhaustion and downtrend is about to start.

Now the level of 6200 will provide strong resistance and unless Nifty Futures closes above this level, the correction will continue. The divergence of short term RSI on daily chart is suggesting a caution and to avoid fresh long trading positions at the current levels.

For past two trading sessions, high trading volumes are accompanying with bearish candle suggesting to avoid any fresh trading long positions. As long as Nifty Futures trades above 5700 on weekly closing basis, the current intermediate trend will be in upward direction.

The intraday resistance levels for Nifty Futures are placed at 6150 & 6200 where as the intraday support levels are placed 6070 & 6030 respectively.

Source : Equity Bulls

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