Nifty had a volatile day closing gap support. An outside day pattern was formed indicating indecision and confusion about the direction.The candle was a bearish engulfing one. With the Nifty in a triangle it is futile to look at these patterns as reversal patterns.Instead we will look to the high -5809 and low -5803 of the pattern which will set immediate direction.
The down trendline from 6229 proved resistance and is now placed at 5862.The green uptrendline from 5580 on half hourly chart has been broken down.We wait to see whether support from the small red triangle at 5795-5801 holds before getting bearish and wishing away the inverted head and shoulder's right shoulder which is forming and still valid.
The low of the hammer -5775 - continues to be crucial support for the upmove from 5566 to continue.It is also the 38.2% fibo level of rise from 5567 to 5904. The 200 Ema is at 5767 thereby offering a good cushion at the 5767-5775 area.
Resistances are at 5862-5879-5904-5941 and Support at 5803-5775-5749-5682.
Nifty continues to flip flop in confusion with an almost equal fight between the bulls and bears. Wait for a breakout from the triangle and neckline of the inverted head and shoulder pattern.Till then trade light and with strict stops.Longs can have a stop at 5776 and shorts at 5905.
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All the calls made in this section are based on my judgment and the information available at the particular point of time. Adequate precaution has been taken while writing the analysis. However, no responsibility is taken for the losses or gains made through the analysis, either legally or otherwise. Readers are advised that acting on the analysis is at their own risk. Stock Market trading involves risk and is a high risk & high return business and I do not accept any financial and/or legal responsibility arising from the use of the information