Nifty bounced back with a vengence once again above the 200 dema on high volumes,but remained below the resistance of 4947 mentioned yesterday. The bounce though impressive with a 110 point rise, has formed an indecisive "Inside Day". Traders will have to wait for a break above or below the yesterday's candle which is at 4946 and 4786 to be sure of the short term direction.
The resistance of 4947 is now stronger with the falling wedge too offering resistance at 4948. The 23.6% fibo level of the entire fall from 5400 is at 4931 making a good barrier around the levels of 4931-4948.
5022 --38.2% fibo level of fall from 5400 to 4786 and 5029 being the latest peak made on 24th May will also prove strong resistances.
Resistance at 4931-4947-5022-5030.
Support at 4898-4840-4796-4755.
Happy Trading !!