Nifty(5375.50): Nifty saw a bounce back after 4 sessions of decline. We have a “Inside Day” pattern on the daily charts and considering the wide ranged bar on Monday this was expected.
Nifty- Daily Chart - Inside day
Nifty is correcting the decline from 5630 to 5268. This is basically phase of 2 of the move that started from 5630 and counter trending. Phase 3 will be a equal to the 4 sessions of decline from 5630 or sharper than that. The level of 5077 is a 4th wave of previous degree and we should ideally see Nifty descend there if not lower. A couple of Fibonacci clusters also come in slightly above here.
Hence we should be looking to add some short positions on Nifty in a staggered manner at or around 5450 and 5495 (may be as early as 5410). If the momentum seems strong and blows through these levels – keep your powder dry. We must see some kind of stalling around these levels. Ill anyway be monitoring the intraday action.
New Positions:
1) Long Apollo Tyres 78 Sl 72 at close Tgt 89
2) Long GMDC 207 SL 194 at close Tgt 240