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Nifty

Occurrence of a ‘Spinning Top /Doji’ candlestick formation is an early sign of loss in ongoing bearish momentum. Nifty did witness further selling but it displayed a smart comeback to close the day near its previous days close itself. We saw the running trend being breached with a ‘Breakdown or BreakAway Gap’ followed by ‘RunAway Gap’ which breached the 19900 support band with strong volumes. Now there could be a scope for the important ‘Exhaustion Gap’ to occur around the anticipated retracement support zone of 19600-19500. The hurdle at 19880 has now become a key hurdle with major resistance at 20000-20200 for the coming weeks ahead. Leverage longs should be added once a firm reversal signal is confirmed above 19790 on closing basis from hereon. Since major trend stop still remains at 19620 which also coincides with the 61.8% retracement support zone of its prior impulse wave. The said zone has a good scope for price stability which could be an opportunity area for redeployment of long positions going forward in the upcoming October series until then one can remain light on positions & maintain a long short equation until a reversal gets set at least on its daily scale.

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