Last week our view played out perfect with the Index declining below 200 DMA and holding above the Fibonacci retracement support of 5920. Even the relief rally could not extend till the first resistance indicated at 6102.
But the index (Nifty) has formed a Takuri (Advanced Hammer) on the weekly Candlestick charts. This is a Strong Bullish reversal pattern when seen in a downtrend. The Japanese word Takuri means 'to test the depth of the water' before taking the plunge. So having tested the depth of water (near bottom) and its ability to hold and stay afloat (push up the prices on 4days of the last week to near high closing), the Bulls will give all their might to push up the Index.
But the Wave studies give a different picture. The downtrend is still intact and further fall is expected if 6200 - 6220 are not taken out on the upside next week.
The supports and resistances remain almost the same for the coming week.
Resistances are at 6120, 6180, 6200 - 6220. Supports are at 5970, 5877 and 5800.
But the index (Nifty) has formed a Takuri (Advanced Hammer) on the weekly Candlestick charts. This is a Strong Bullish reversal pattern when seen in a downtrend. The Japanese word Takuri means 'to test the depth of the water' before taking the plunge. So having tested the depth of water (near bottom) and its ability to hold and stay afloat (push up the prices on 4days of the last week to near high closing), the Bulls will give all their might to push up the Index.
But the Wave studies give a different picture. The downtrend is still intact and further fall is expected if 6200 - 6220 are not taken out on the upside next week.
The supports and resistances remain almost the same for the coming week.
Resistances are at 6120, 6180, 6200 - 6220. Supports are at 5970, 5877 and 5800.
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