Nifty Dec fut tanked a good 90 pts from its prev close of 5107 to make a low of 5017. It broke a major support of 5051, which was its prev candle low on weekly charts, confirming a negative trend. After making tweezer tops on weekly basis, Nifty has managed to break the low of last weeks candle, giving rise to pessimism.
On daily chart, Rsi, stochastics, macdh, all momentum indicators have given negative crossovers. On weekly basis as well, Rsi, stochastics given negative divergences.
The price action as well as indicators are very much in synch suggesting a bearish trend for the upcoming sessions.
A month long trendline may give some support at 5001 levels. But, considering the fact that all momentum indicators suggesting weakness in the mkt, I believe that bears will break this support effortlessly in the coming session.
I believe the levels to watch out for in the coming session are, below 5071, Nifty may test 5001-4965. However, on the upside, above 5075, we may witness some profit booking and Nifty may test 5110-5123.
I rest my views here ... Happy trading !!
Disclaimer: The said technical analysis is a perception based on various charting methods. Trades on my opinion are to be done solely at your own discretion.
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