Nifty - rejected from top of GAP zone
NIFTYIn today's market session, Nifty opened gap up toward the top of the gap created during the February crash (red zone shown in the chart) and tested the high of the resistance zone. But after that, it was not able to sustain the highs and started to sell off.
Previously, Nifty has had a good run up and we were expecting a slight retrace after such a move.
SGX Nifty has also been rejected from the 200MA on the daily and seen a selloff. (see image below)
If Nifty breaks the resistance zone with good volume and holds above it, then we can expect another leg up but till then I would be expecting short term bearish to sideways market (i would also be ready to change my view as i see fit).
We can totally see a bullish Nifty tomorrow after the sell off today though i would be leaning more towards Nifty going down or sideways for the next immediate short term.
Anyhow, there is no point in speculating. Let's see how Nifty behaves tomorrow and take trades accordingly.
Daily RSI
Nifty- 69 ( Bullish )
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