Indian Markets are trading above the major resistance levels, but finding it difficult to stay afloat. Nifty in the current week have given breakout pattern above the 4740 levels, and currently trading above 4800 levels. But in the past 3 days Nifty is finding it very difficult to stay above the 4846 levels, as mentioned earlier also the Nifty has resistance level at the same. In the last 3 days it did made an intraday high above the same, but could not close above the same. In the last blog I had mentioned that the close above the same will take the Nifty upto 4889-4925 levels. Today Nifty made an intraday high of 4889 levels as mentioned. For the past 3 days Nifty is finding it difficult to close above the trendline. It is closing almost at the trendline. Breakout above the same could take the Nifty straight to 4925-4950++ levels.
Till will continue to have good support at 4740 levels. Yesterday the Bulls did try to make the Nifty close above 4846 levels, but the panic selling or profit booking drag down the markets again after the mid session. I am glad to inform that this writer had informed the clients to b0ok profits in their trades when the Sensex was trading higher around 230 points, and as we all can see that the Sensex fell down to the negative territory, but closed marginally higher.
I would still think that the traders should keep their positions light in the market. I don’t think so that the markets will fall like it use to fall in the near past, but it is better no to make loss in the trades. There are more chances that the markets will continue to rally. but the SL has to be kept in mind.