Nifty has produced a doji for the fourth consecutive day! The indice closed yet again around the fibonacci 0.618 resistance around 8790/8800 spot levels. Believe it or not, indications are ripe for a reversal from these levels, except for a bearish reversal confirmation signal. It is recommended to wait until next week to get confirmation on a Daily Chart basis, to initiate fresh short positions. Immediate support is around 8700 spot levels, followed by 8450, 8260, 8100 and lower while resistance is seen at 8800, followed by 8900/35 levels respectively. Selling on rallies remain a favoured trading strategy.
The USDINR is trading flat at 62.30 at the moment after printing highs at 62.40 spot levels. The pair remains virtually unchanged and is poised to push higher towards 62.70 and 63.00 levels soon. Immediate support is at 62.00 and resistance is at 62.70 spot for now. The pair remains a buy on dips candidate for now. It can remain subdued for a few sessions if Nifty remains higher and pushes towards 8900, but the USDINR pair isn’t expected to drop below 61.90 levels for now.
Bank Nifty closed down by -0.40%, Auto at 0.35%, Energy at 0.60%, Finance at 0.51%, FMCG at 0.45%, and IT remained flat at 0.15%.