Nifty futures broke the important level of 5827 with a gap down with global markets falling yesterday. After closing for nearly at the same levels it gave away the support of 5827. Yesterday it was observed below 5827 we may see more downside and today open was at 5832.60 and high was at 5838 which may be noted. Below this level of 5827 we have support at 5743.25 as the intermediate level and major support coming at 5648.25 on the futures. This level of 5648.25 is the third monthly level below the pivot of 6028.25. On the upside the level of 5838.25(today's high at 5838) was our second monthly support level which was comprehensively broken today on the futures. The close for today is at 5767.95 and the low was at 5755.25. The level of 5838.25 will be resistance on upside and recovery will start only by closing above. The divergence observed on the indicators has not worked on price action and today there is mixed signal with RSI moving down and MFI still holding the fort. On charts we see RSI is at support levels and MFI is rising from old supports. Price has supports at levels near the gap of earlier breakout as marked on the chart. With expiry looming overhead we may see more volatility on the futures so one can trade with caution. Intraday traders can watch the levels on spot nifty given below to trade on Wednesday.
Spot Nifty Levels for Trading on Wednesday :
No trade between 5742 and 5780(To avoid whipsaws)
Buy above 5780 sl of 5760
targets 5799-5818(add positions, breakout on the upside),
5837-5856-5875-5894-5913.
Sell below 5742 sl of 5762
targets 5723-5704(add positions,breakout on the downside)
5685-5666-5647-5628-5609.
Happy Trading !!!
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