The index pulled back in the last couple of sessions but its 2 wk EMA stands around 31250 with a major resistance @ 30800 and a minor one around 31100. Even if the index does manage to breach this major hurdle around 31000, it will need to shoot up beyond 31800 in successive sessions for it to be able to resume the bull rally, and a weakness before that will bring about a divergence in Stochastics. There are ample chances of the index showing weakness around 31150 for another leg of sell-off for levels marked on the chart.
30800 will act as a deciding level on the upside. If the index manages to sustain above it, it will most definitely shoot up by a 1000 points.
On the downside, a breach of 30300 should be sufficient signal for a short trade for a target of 29500 at least.
DISCLAIMER: The author is a SEBI certified Research Analyst and may or may not have a position in the scrip being analyzed. Nevertheless, all analyses are projected with a completely unbiased mind. The analyses should be used as a second opinion, at best, to one’s own analysis and/or in consultation with his/her financial advisor.
30800 will act as a deciding level on the upside. If the index manages to sustain above it, it will most definitely shoot up by a 1000 points.
On the downside, a breach of 30300 should be sufficient signal for a short trade for a target of 29500 at least.
DISCLAIMER: The author is a SEBI certified Research Analyst and may or may not have a position in the scrip being analyzed. Nevertheless, all analyses are projected with a completely unbiased mind. The analyses should be used as a second opinion, at best, to one’s own analysis and/or in consultation with his/her financial advisor.
Trade closed: stop reached