Market’s mood was absolutely bullish and buying pressure dominated the intraday price action in nifty and sensex. Nifty rose 235.25 points or 3.4% and closed at 7225.00; Sensex gained 777 points, posting its biggest single day rally in 7 years.
As I pointed out in my yesterday’s analysis, Nifty’s opening price action was an interesting one; Market gapped up at 7040.00 and rose consistently until 7150.00. Impulse movements took place early in the session, leaving rest of the intraday price action in consolidation structure. Market’s opening price action was clearly a sign of bullish sentiment. Buying pressure dominated the later session, although in a quiet way, still provided pullback opportunities for intraday traders.
Interesting developments took place, after Nifty tested 7150.00 a resistance level, which was monitored by wide number of market participants including Portfolio managers and floor traders. After crossing the resistance level, Nifty went into consolidating price action. One aspect to notice here is that, Nifty didn’t had any large or noticeable candlestick formations, most likely due to low conviction or participation in the market activity.
Nonetheless price action rose until 7225.00 indicating the natural conviction of buying pressure. The momentum or strength of buying pressure was very fierce in the morning, but somehow weakened after it crossed 7150.00, still bulls dominated the intraday trading session. Nifty closed at 7225.00 with a clear bullish note. Traders should watch the key levels for tomorrow’s trading session; also keep an eye on tomorrow’s opening price action on both nifty and sensex.
Important support levels are at 7150.00, 7100.00 and 7080.00
Important resistance levels are at 7250.00 and 7225.00
