Today's candle made a breakout from the downtrending line but it was not too impressive as it formed a spinning top.Volumes were low and breadth marginally positive. However, buying support coming even before Nifty reached the 38.2% retracement level of the rise from 5177 is encouraging. Daily oscillators are moving up strongly.Daily EMAs are still bearishly aligned indicating the rally is corrrective in nature.
Half Hourly Chart
Intraday oscillators showed negative divergence and the Nifty is now reacting to it. The uptrendline from 5177 lows has been broken. The trend following indicators though are bullish with the 5,10,20 and 50 ema bullishly aligned. The 5 and 10 ema are bullishly aligned with the 200 ema.This indicates the correction from 5506 taking place would be that of the 329 point run up rather than a resumption of the larger time frame downtrend.
Resistance is at 5506-5556-5585 and Supports at 5456-5430-5381.
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