NIFTY opened in negative but recovered at the end by almost 60 points from the low. NIFTY made a low at 5437 (almost at 5442 which I mentioned in my last 7 reports). Now NIFTY daily chart has three major formations in the process which could be confirmed in tomorrow’s trading session. Firstly, a rectangular formation breakout at 5482 level or 5603 level on closing basis. If the breakout is on downside then second formation is inverted head and shoulder which has a support at 5442. And if we see the breakout of 5442 then a third formation which is a rounded top could be formed with the support at 5356-5383 levels as marked by bold line in the graph. Therefore if NIFTY breakouts on downside then 3 formations has chance to be formed up while on upper side we may see new rally over 5603 level. So now strategy will be to wait and watch where NIFTY takes support and then buy at the levels.
NIFTY levels for 14th June:-