Trend:👇(Down) - Reversal above 16550
Nifty @ 16355: Up 190- Bulls Regaining Control?
In the last post, we had discussed that "there are early indications & a small probability arising that probably markets have done with the bottom at 15750 levels and we could see some upside from here". We had laid out 16000-16050 as the crucial support on downside and 16550-600 on the upside as the key resistance area. Nifty, did break below 16K on expiry day but recovered smartly to close above 16100 and today it has moved further up towards 16400 levels.
After seeing the movement of last couple of trading sessions, our view has only grown stronger. Though Nifty has not yet taken out the key resistance of 16650 ( now revised to 16550) there is a possibility that bottom is done for Nifty (its a bold statement and generally we dont make such claims till the time its visible on charts clearly).
Daily & hourly charts are revealing higher-top higher bottom kind of formation. First low was at 15750 then 15800 & yesterday (expiry day low) was around 15900. Similarly top area was also 16350 then 16415 and if on Monday market starts trading above 16415 then we will have another higher high. Also the timecycle is not playing out in favour or bears. Market has already consumed so many trading sessions & if there was some larger degree downmove pending then it should have been played out by now.
Having said this as long as market is trading below 16500-550 theres still a hope for bears as the larger degree downtrend remains intact below this level. However, for any bearish scenarios to play out Nifty needs to fall below 15900 in a swift and sharp move else if bulls are allowed to operate in this zone for few more sessions then they are likely to run away with the game.
Happy Trading!
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