AMBIT CAPITAL:: On Monday, Nifty took support around 200DMA and closed the day above the crucial support level. The Hourly RSI is oversold and Daily MACD in buy mode signaling near term up move will continue. On the upside resistance for the Index will be at 5070 and then 5180. On the downside support for the Index will be at 4920. For the next couple of days, Index may consolidate within the range 4950 to 5150. Going forward, Nifty is expected to bounce till 5200 and therefore, build long position on every decline till 4920. Short term trend remains UP.
In my view, Indian market has just reacted to the Friday's Wall Street sell off and is waiting for further directional cues from the international markets. As the US market may take one or two days to find it's immediate direction, the next direction of the Nifty futures too remains unpredictable. If the US markets were to find support at the current lows and hold it, Nifty may try to test the next resistances. Traders may watch for the breach of both the low and high of the Monday's trading range for further directional indications.
Watch nifty spot and if halts around 5060-5068 level, GO SHORT.
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