Nifty's weekly charts signifying strong weakness while daily charts Nifty seem to have found support on lower levels.
For last two days Nifty closed with minor gains and on Daily Charts Nifty formed reversal pattern doji.
But these signals are not strong enough and need to be confirmed by some more positive closing in next few sessions.
If Nifty closed with gains on weekly basis then we sure have touched a bottom and reversal is surely going to happen.
Bank-Nifty has much better and stronger charts.
Bank-Nifty charts indicates strength and RBI's positive approach that they just increased CRR by 75 basis points gave a lot of boost to banking stocks.
Most banks and NBFC stocks bounced on this news and are well placed now.
On the lower side Nifty proved strong support near 4758 level and it should act as good support again.
BankNifty should find support at 8260 and 8220 levels.
Breach of these levels may push BankNifty even lower till 7885 level.
On the higher side Bank-Nifty may rise up to 8890 if it manages to stay above 8605.
Nifty must regain 4945 level in order to rise up further and above this level bulls will 5018 and 5077 levels easily.
If Nifty on lower side breaches 4758 then it may slip to 4640 level as well.
Final support is expected to come at 4532 level of Nifty which is the low of November 3.
Although 4640 is much stronger level of Nifty and it is difficult to be breached even in worst of the case.
So overall scenario for the market is in some dilemma and international cues will play an important part in it.
Our advise to traders and investors is to stay long in the market and buy on every dip as current down trend is not going to continue forever and buying will come on lower levels.
| Important Nifty Levels for 1st Feb | ||
|---|---|---|
Nifty Pivot |
4872 | |
| Support | ||
| 4840 | 4805 | 4773 |
| Resistance | ||
| 4890 | 4910 | 4945 |
| Important BankNifty Levels for | ||
|---|---|---|
BankNifty Pivot |
8628 | |
| Support | ||
| 8595 | 8559 | 8490 |
| Resistance | ||
| 8685 | 8709 | 8753 |
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