Parallel Channel hourly candles suggests Nifty is delicate zone.Parallel Channel of Nifty suggest that we are in delicate zone with shadow of the candle being positive. Nifty has thrice taken support on the channel bottom as you can see in the chart. A strong support zone for Nifty is seeing strong buying emerging near the channel bottom. This strong support zone is between 23509 and 23263.
The Three important resistances however are not allowing Nifty to grow further. These 3 resistance are:
1) Mother line resistance near 23775.
2) Father and trend line combine resistance near 24010.
3) Third important resistance for Nifty to conquer will be near 24288 which is the mid channel resistance.
When we will get a closing above 24288 the Bull can breath a little easy and try and push Nifty upwards towards 24510, 24779 or even above 25K.
The zone between 25033 and 25200 will again be a tough zone to conquer as the Nifty will again hit the top of the parallel channel.
Conclusion: All is good till we do not get a closing below 23K levels. Below 23K levels weekly closing Bears will have position to overpower the market and drag Nifty further down. For long term investors this is good opportunity to invest big go long and hold on.
Today ONGC, Reliance, ITC, Asian Paints, Dr Reddy, Wipro and TCS are the few large cap stocks which saw buying.
The laggards for Nifty today were Apollo Hospitals, Trent, Shriram Finance, Bajaj Auto, ultratech and few other Large cap stocks.
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