Nifty gaped down (on 4th) well below 5970 and hit a low of 5933. It held above the Fibonacci support of 5920 and made a strong dash to 6000 and closed above it at 6009.5.
As indicated on Monday (3rd Feb) break of 200 DMA is not a one day affair. The relief rally is very normal and the short term trend is still down. The rally can continue for a day or two till 6102 and 6160, above which it faces the 6189 ceiling of the big gap formed on 27th Jan which is a stiff resistance.
The extent of relief reduces the downward target. We still believe the next 'wave' of selling has the strength to take the Index to 5877 - 5850 as indicated earlier.
As indicated on Monday (3rd Feb) break of 200 DMA is not a one day affair. The relief rally is very normal and the short term trend is still down. The rally can continue for a day or two till 6102 and 6160, above which it faces the 6189 ceiling of the big gap formed on 27th Jan which is a stiff resistance.
The extent of relief reduces the downward target. We still believe the next 'wave' of selling has the strength to take the Index to 5877 - 5850 as indicated earlier.
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