On the daily charts we are coming to the bottom of the rising channel which is a significant move of correction.Expect some bounce back at the bottom of the channel 4980 level.Break of this rising channel will be bad for the Nifty in the medium term.Break of this channel will form a new downward channel.On the hourly charts we are the bottom of the downward channel which portrays a downtrend.Some consolidation or sideways move is observed here which depicts indecision or lack of commitment on part of traders.The break out on whichever side will be significant.On the upside 5118-5150-5202 seems the resistance.Above 5202 we may move to 5300-5350 levels.Below this channel on the hourly charts we have supports as per daily charts channel around 4980-4960 levels which very important level to watch.the more time taken by traders in this indecision will create a strong upside bias.Still we need to be cautious around the current levels with light commitments or suitable hedges for the open positions.Shorts are to be booked around this levels to open again below 4960 levels or on new lows are made for the day with suitable stop loss.
Happy Trading !
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