Despite Geo-Political tensions, Nifty closes above Mother line. It was quite remarkable for Nifty to close above the Mother line (50 Hours EMA) despite the Geo-Political tensions and brewing storm of escalations at border. This shows the character of not only Indian market but the resilience of India as a nation. In yesterday's post itself we had mentioned that strong technical resistance has been reached. Add the tension and intent of India to fight against terrorism so it was a perfect recipe for a major fall. Which may happen if things escalate further next week but recovering from 23847 and to close above 24K at 24039 shows that when things will be back to normal the indices will bounce back. Resistance for Nifty now remain at 24096, 24335 and 24504. Supports for Nifty remain at 23914 (Major Mother line support) of 50 Hours EMA, 23800, 23530 and finally 23363.
While Long term players, FII, HNI and DII look at such opportunities to invest for Retail trader it becomes very difficult to control their emotions in such an environment of Geo-political pressure and then we saw a huge fall in the market. The opportunity was seized by both DII and FII with both hands as both turned net buyers for Rs.6492+ Crores. So traders / investors should always avoid knee jerk reactions. Who knows what happens during the weekend the support and resistance levels to watch out for are already mentioned in the message.
Disclaimer: The above information is provided for educational purpose, analysis and paper trading only. Please don't treat this as a buy or sell recommendation for the stock or index. The Techno-Funda analysis is based on data that is more than 3 months old. Supports and Resistances are determined by historic past peaks and Valley in the chart. Many other indicators and patterns like EMA, RSI, MACD, Volumes, Fibonacci, parallel channel etc. use historic data which is 3 months or older cyclical points. There is no guarantee they will work in future as markets are highly volatile and swings in prices are also due to macro and micro factors based on actions taken by the company as well as region and global events. Equity investment is subject to risks. I or my clients or family members might have positions in the stocks that we mention in our educational posts. We will not be responsible for any Profit or loss that may occur due to any financial decision taken based on any data provided in this message. Do consult your investment advisor before taking any financial decisions. Stop losses should be an important part of any investment in equity.
