Nifty has been bearish for 7 continuous sessions which is not sustainable and a pullback is due. It is currently at a confluence of multiple support areas which is 38.2% retracement of the whole move from 15183 to 18887, trendline joining the recent swing lows of 16747 and 18353 and also the Covid trendline if you join the close of the week of Mar end and 15183.
Bullish signs: -
1. Multiple trendline supports
2. Budget day low of 17353 and gap zone of 17311-17353 should provide support.
3. 1hr RSI showing signs of divergence.
4. 38.2% retracement area of the move from 15183 to 18887.
5. CNXIT staying above 30500
Gap down/Flat: - If Nifty does open below 17500 or gap down it should first move lower to the support area of 17310-17350 but expecting a strong reaction from here and the pullback is expected to last 17650-17700 in the next few days. If bearish momentum continues Nifty could move down to 17100-17150 where there is gap support and also the 50% retracement area of the whole move.
Happy Trading and Best of Luck!!
Disclaimer - This is not trade recommendation or advice. This is purely for educational purposes. Do your own research before entering into a trade.
Bullish signs: -
1. Multiple trendline supports
2. Budget day low of 17353 and gap zone of 17311-17353 should provide support.
3. 1hr RSI showing signs of divergence.
4. 38.2% retracement area of the move from 15183 to 18887.
5. CNXIT staying above 30500
Gap down/Flat: - If Nifty does open below 17500 or gap down it should first move lower to the support area of 17310-17350 but expecting a strong reaction from here and the pullback is expected to last 17650-17700 in the next few days. If bearish momentum continues Nifty could move down to 17100-17150 where there is gap support and also the 50% retracement area of the whole move.
Happy Trading and Best of Luck!!
Disclaimer - This is not trade recommendation or advice. This is purely for educational purposes. Do your own research before entering into a trade.