Sensex closes 190 points higher at 23,381.87 and nifty climbed back above 7100 a precision radar level, that I‘ve been mentioning since last few days on intraday basis. Sensex closed 0.82% higher, while nifty closed 0.85% or 60.20 points higher at 7,108.45. Asian shares faired broadly higher today, due to yesterday’s euphoric sentiment.
Nifty started the day with a positive note, as visible on the chart. Key level 6,960.65 provided an absolute bid for nifty to rise until round number 7,056.88. After some prominent stocks such as Jindal steel lost nearly around 6.51%, Nifty started to take a dip or minor correction; it’s a result of news trading algorithms. Also worth to note that floor traders closed some initial positions due to the fear of long term bearish trend reinforcement.
But nonetheless shadows indicated the presence of buyers and willingness of buyers to push the price action above. The selloff which started at 11.30, from key level 7,060.00 was weak and corrective confirmed the bullish thesis for the day.Nifty rebounded sharply after price action tested the key level 7,000.10; it’s also a notable round number. Round numbers usually have natural supply and demand imbalances; in this case it helped nifty to rise sharply from the support level.
Around 3.00 pm, Nifty crossed the most anticipated radar level 7,100.00. Nifty breaking 7,125.00 and holding above will confirm the strength of buyers and indeed indicates the strength of buying pressure. If price action retraces until 7,050.00, Nifty should hold the level clearly – any clear break below this level is not a good sign for bulls. Watch the price action clearly and trade what you see.
