Trend Reversal only above 5950 - GEPL Capital

Nifty Futures closed at 5833 which is 42 points higher than its previous close of 5791. After opening above 5800, Nifty fell downwards in intraday forming the low at 5754 and thus maintained the crucial support 5750.

Nifty Futures needs to maintain the key support of 5750 and sustaining below this level may see a sharp sell off till 5600. The initial resistance of price gap on daily chart seen at 5900 but the short term trend reversal will be seen only above 5950.

A short term RSI on daily chart is still in the 'Sell' mode, hence we recommend to place a stop loss at 5750 for all long trading positions. Short selling positions can be initiated below 5750 with the stop loss of 5825 for the target near 5600.

Fresh long positions can be added only if Nifty Futures is able to surpass 5950.

As long as Nifty Futures trades above 5500 on weekly closing basis, the current intermediate trend will be in upward direction. The intraday resistance levels for Nifty are placed at 5850 & 5900 where as the intraday support levels are placed at 5800 and 5750 respectively.

Source : Equity Bulls

Keywords