Half Hourly Chart
Daily Chart I
Daily Chart II
Yesterday I mentioned,
"Second successive doji which has formed an outside day (a higher high and a lower low than the previous day). If it occurs after a market has had a big move, it is often taken as a signal that momentum is waning for that move.This applies to the Nifty as the uptrend is 7 weeks old.
Nifty corrected today making a lower high and low and wiping out gains of the last three trading sessions.The close was at the low of the day showing extreme weakness.The uptrending channel shown on daily charts has been broken. Volumes were average and breadth negative . Daily oscillators have started moving down from overbought region after showing negative divergence.Daily Chart II shows trendline support at 5227. This coincides with earlier support at 5235 and the 23.6 % retracement shown on Chart I at 5233.
Half hourly charts show the nifty taking support exactly at the lower trendline of the channel shown. Oscillators have reached oversold zone. Supports are strong at 5230 area. We may expect a bounce at these levels.
Happy Trading !!