DAILY TECHNICAL VIEW
Nifty:- Bulls at South China Sea!
In the last four days bulls had the best consecutive four day gap up and strong bull candle close. Previous such force was seen in Nov 2020. However, the economic and liquidity canvass is completely different. The move in many counters is sharp and range 20% gain in one month. However, the volumes are not commensurate with the rise in all the counters. On decline spaces also the story is similar. The move mimics the parabolic trend line and that is dangerous to say the least if it breaks on any part of that curve. The last three day gap was seen when we hit the ATH, the fourth day also was a gap open but closed in the red. The current price action is closer to the down ward trendline from the ATH. The sharp rise calls for corrective moves towards 200 DMA that is around the 17000. Nancy Peloci visit to Taiwan, is watched with China reaction as the South China sea gets busy with the military drills. For the day remain short stops 17380, what if we open gap down then, short at the open stops 60 points for 100-150 point move. Supply 17330-380-430-480, support 17230-17180-17130-17080
NIFTY BANK:- Ecstasy Bulls!
Bank nifty bulls remain on the high. After dabbling little double ended the day green. The moves are the extreme to say the least. This is reflected on the leaders of the pack. This space is critical of extreme levels reverting in fashion and that level is now. So 38000 is not an easy point to climb and thus a corrective move is what is expected. Each corrective up or rise typically tracks a 1000 point step. However, the current corrective fall is anything but corrective at this stage. Remain short below 38000 for low 37000. 36800-37800 is the ideal near term range before the policy.
@sribhashyam65 – Trading View – sreebhashyam www.quantumtrends.co.in
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