Half Hourly Chart
Yesterday I wrote, " The Nifty needs to trade above 5427 to remain above this trendline and close above 5437".The trendline in question being the uptrendline from 4787. The Nifty traded for a while below 5427 but finally broke out and retested 5450 levels, suffered from vertigo and fell to close below 5437. The close below 5437 ensured that the breakdown from the uptrendline on Line charts continued.So the sideways movement with a downward bias continues , making marginally lower highs and lower lows for the second day in a row.
The range today was 5407-5451, which makes it important support and resistance.the fall from 5451 has taken support at 5424 which is exactly at the 61.8% level of the rise from 5407 to 5451.A fall below 5424 would therefore show weakness.Nifty will show strength only above 5441, which is the 61.8% level of rise from 5424 to 5451.It is also the uptrendline support making it very important to close above this level .
Negative divergences are intact on daily oscllators.The breadth was marginally negative and volumes were higher on advancing shares than on declining shares.
Supports are at 5415-5407-5400-5375-5353. Resistance at 5435-5441-5451-5477.
Happy Trading !!