Friday, May 10, 2013

10th May: Initial indication of trend reversal below 5985





  • Nifty Futures closed at 6049 which is 26 points lower than its previous close of 6075.
  • Nifty Futures moved upwards in intraday but was not able to surpass 6100 mark forming intraday high at 6090.
  • Still Nifty Futures is consistently closing above its previous day’s low for past 16 trading sessions keeping the momentum intact.
  • Immediate resistance zone is placed between 6120 – 6130 where multiple resistances are seen on the charts.
  • On the downside, 6030 and 5985 are the important support levels for intraday.
  • Initial indication for trend reversal will be seen if Nifty Futures closes below 5985.
  • The short term RSI is entered in extremely overbought territory indicating caution hence strict stop loss recommended for trading long positions.
  • As long as Nifty trades below 6000 on weekly closing basis, the current intermediate trend will be in downward direction.
  • The intraday resistance levels for Nifty Futures are placed at 6100 & 6130 where as the intraday support levels are placed 6030 & 5985 respectively.

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