Medium Term Trend: ☝UP (Changes to Down below 12500)
Resistance @13145 : Nifty opened around 13000 and traded strong and added around 140 points by close of play.
In the previous we had mentioned that Nifty has posted a 'bearish engulfing' candlestick on the daily charts and such candles may carry negative implications. We had also mentioned that Nifty has support near 12750 and in case it breaches then we could see more weakness towards 12500 levels ( which was the last support for medium term perspective). On Expiry day we had even posted on twitter that short positions should only be initiated below 12750 and not before that.
Nifty did trade weak last week but held on the support of 12750-800 levels and jumped towards 13000 levels on the expiry day which suggested that bulls are not ready to let go yet. Nifty proved that its support at 12800 was a strong one but at the same time the high of bearish engulfing candle (13145) is still not taken out hence we do not rule out the possibility of markets falling towards 12750 once more.However if 13145 is taken out in next couple of trading sessions then the upmove is likely to gain more speed and Nifty could easily touch 13300-13400 levels.
The way 12800 support and held and Nifty has moved back towards 13100 levels is indicating that 13145 is likely to be breached (but will believe it when we see it).
In Nutshell, for now, inspite of showing few ' bearish technical' indicators, Nifty continues to move up and held on to its major support of 12750 on price chart (and like we always say, price is the most important of all) which suggest higher levels are possible from here. In case Nifty fails to move above 13145 ( closing basis) and start moving down then we can see a retest of 12800 levels and below that 12500 however above 13145 we can see upmove gaining speed once again. From trading perspective , for now the long position can be maintained with a SL of 12925 levels and if someone is short then 13145 becomes the obvious SL.
Happy Trading
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