According to a report by Stewart & Mackertich, support for Nifty is at 8855, 8820 and 8800 while the Index has resistance at 8940 and 8970ï»¿.
Stewart & Mackertich’s Market Report:
Nifty ended with a loss of 0.51 percent at 8899.75. Taking overnight global cues Nifty opened on stronger note but got slammed from day’s high 8992.50 to end the session below day’s open. Closing below 8900 led to a bearish candle just below that trend line, connecting previous double tops, resistance placed around 8970.
Failing to sustain above that trend line that we have been discussing since previous week led to furious sell off. For the second time Nifty reacted down from that trend line. Hence, considering longer-term chart pattern, we prefer sell on rise is the strategy to be followed now. Down side supports are placed around 8855, 8820 and 8800. Upside resistances are placed around 8940 and 8970.
On the Nifty hourly chart, it closed below the 50 hourly EMA placed around 8900. Midterm upward trend line has been violated on closing basis. 100 Hourly EMA is placed around 8855 and expected to serve as the next support. However, Successive closing below 100 Hourly EMA may trigger further correction towards 8820 and 8800.
Considering Nifty multiple time frames and overall chart pattern that shows, for the second time Nifty reacting down from the trend line resistance which could be fatal if we end the last trading day of the week on further weaker note.
Nifty crucial supports & resistances -
Support: 8855, 8820, 8800
Resistance: 8940, 8970
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