NIFTY closed today at 5885.70. NIFTY made low and took support at 5866 as mentioned by me yesterday. Today NIFTY daily created a Doji which is a sign of reversal of prevailing trend which in our case is bullish trend. 5day EMA is at 5866 which is acting as a support for NIFTY since last 2 trading sessions. NIFTY has traded in range between 5866-5937 till now in this week which is a “line” formation as per Dow Theory. “line” formation indicates a consolidation phase and breakout on either levels (5866 or 5937) would decide the next trend. Prevailing Week candle on Weekly chart has formed up a shooting star at top of the trend which might be a sign of small correction. Daily oscillators (RSI and Stochastic) are indicating a downtrend and MACD also joined the race for showing a slight turnaround. But weekly indicators are showing some upward movement but 14week RSI has entered overbought condition. Now question arises where will market head towards??? We will get the answer in 2 trading sessions but tomorrow watch out for 2 crucial levels 5866 and 5937.
NIFTY levels for 8th April