Nifty may test previous low

Yesterday finally closing near the day’s low indicating dominance of bears throughout the trading session. On the hourly chart, Nifty broke the crucial support of the upward trendline and closed below that, which is not a good sign for bulls. Currently markets are poised at very crucial levels, as the Sensex has made a low of 15,303 and has taken support near the short-term reversal level of 15,300. However Nifty has breached its corresponding level of 4,700 and has closed below that. Nifty has formed triangle pattern, the breakout of which occurred when Nifty breached 4,700, which is a bearish sign. . The last ray of hope for the bulls is till Nifty hold above previous swing low on hourly chart which is around 4,628 and the corresponding level for Sensex is 15300. If bears are able to breach these levels in the coming trading sessions, it is very likely that Nifty may retest its previous lows around 4,450 and then the lower channel line, which is around 4,300. The momentum indicator KST on the daily chart turned down, but is still above the signal line. Downside, Nifty has support initially at 4,625 and then around 4,540 and on upside it may face resistance around 4,700-4,740. Volatility may continue in the coming trading session. The market breadth was in the grip of bears with an advance decline ratio of more than 1:2.

ScripName------S1-----S2-------RS.-----R1------R2---Position
Nifty----------4585----4629----4666---4693---4740-go long above R2,Go short below S2.
Adlabs-----593--------598-------603---608---614--Sell on rise to R2
Cent. Text----712----719--------725-----731---738--Sell on rise to R2
DLF----------596----602------608------613---619-Go long above R2,Go short below S2.
Icici Bank-----751----758------764-----766----775-Go long above R2,Go short below S2
Infosys------1457----1471----1483-----1498--1508-Go long above R2,Go short below S2
J P Asso.----216-----219------221-----223----226---Sell on rise to R2
Reliance---2283----2305-----2322----2340---2365---Go long above R2,Go short below S2.
Rel.Cap--1148------1159---1168------1178----1189---Go long above R2,Go short below S2.
SBI----1578------1592-------1605------1618----1632--Go long above R2,Go short below S2
Tata Steel--650---656-----661---667-----673--Go Short with stop loss above R2