NIFTY today was too volatile on the downside. It closed at 5749 at our first support and made low at 5700 which was my second support. NIFTY is forming a pennant pattern, breakout of which will bring the uptrend. Breakout of formation is expected at 5900 which will decide the bull run. It made a high at 5805 which was also a resistance point. Daily RSI and Stochastic are below 50 indicating a bear run for the index. IF on the down side 5730 level is broken on closing basis then we might see down trend but current formation suggests the uptrend. Today Reliance was the stock which brought up the market from the day’s low. Yet the strategy will be buy NIFTY on dips with the stop loss of 5700.
NIFTY levels for 2cd May: