05 Mar ’24 — Nifty breaks a support, BN breaks a resistance
Nifty Analysis - Stance Bullish ⬆️
Recap from yesterday: “Our stance continues to be bullish and the first support level would be 22295. It is a shallow support and not quite relevant for a stance change, but the momentum is what really matters.”
4mts chart
For a brief period, Nifty traded below the support level of 22295. Even on the lower timeframe we did not have a close below that level due to which a stance change is not required. Nifty managed to pull up and close above 22358 which is not a bad thing at all, but what was worrying is how NiftyIT traded today. Even from the start, the weakness in the IT sector was evident. NiftyIT ended the day -1.59% ~ 594 points. The major reason Nifty fell today was attributed to this weakness. There is something the IT sector knows that we don't. Look at how SPX (-0.89%), NDQ (-1.78%) are trading, a selected few people knew this in advance and started selling the tech sectors.
On the higher timeframe, the 3 red candles till the support level stands out. Even though the buying came today, it may not prove useful if we gap-down tomorrow. It all depends on how the US market closes today. Primarily, I need to spend some time to understand why the tech sectors are cooling off. News aside, the charts still shows no change in bullish stance, however if we open gap down tomorrow and that too below the 22295 levels we will immediately change stance to neutral. And if it breaks 22199, we would love to go short.
63mts chart
Recap from yesterday: “Our stance continues to be bullish and the first support level would be 22295. It is a shallow support and not quite relevant for a stance change, but the momentum is what really matters.”
4mts chart
For a brief period, Nifty traded below the support level of 22295. Even on the lower timeframe we did not have a close below that level due to which a stance change is not required. Nifty managed to pull up and close above 22358 which is not a bad thing at all, but what was worrying is how NiftyIT traded today. Even from the start, the weakness in the IT sector was evident. NiftyIT ended the day -1.59% ~ 594 points. The major reason Nifty fell today was attributed to this weakness. There is something the IT sector knows that we don't. Look at how SPX (-0.89%), NDQ (-1.78%) are trading, a selected few people knew this in advance and started selling the tech sectors.
On the higher timeframe, the 3 red candles till the support level stands out. Even though the buying came today, it may not prove useful if we gap-down tomorrow. It all depends on how the US market closes today. Primarily, I need to spend some time to understand why the tech sectors are cooling off. News aside, the charts still shows no change in bullish stance, however if we open gap down tomorrow and that too below the 22295 levels we will immediately change stance to neutral. And if it breaks 22199, we would love to go short.
63mts chart
