Nifty had been in strict profit booking mood and bulls were trying to find out a way to get out of the trap and then Moody’s Re-rating on India came as a surprise on the street! Markets took a U-Turn on such news and we saw a initiation to a new short term rally. 10345 which was a strong resistance level is now acting as a “battle field” for Bulls and bears since last 4 sessions.
Interestingly we have got “4 Consecutive Doji’s” on Nifty daily chart which is signifying a a perfect Demand And Supply scenario. Tomorrow could be an interesting day which could bring out one winner for short term. Applying Elliot Wave on the chart, it seems we are into Wave 5 of the Minor trend which could end around 10600 which was also target activated on Inverted H&S breakout at 9000 making target more feasible. For near term support, 10150 could act as a stop loss for all fresh longs. Even taking support of Derivative setup as we get near to Expiry, 10300 has a strong writing on the PUT side which means now that level is difficult to close below in next week.
So now as Doji’s are crowded on the chart, tomorrow could be decider day or to say for me it will be a confirmation day for a long calls. Be stock specific on the trades and not on the index. Keep a trailing SL of 10150 for all existing longs and for fresh longs keep 10270 with tgts of 10480/10600 in coming weeks.