Support for Nifty at 8890-8860: Stewart & Mackertich

Stewart & Mackertich’s Market Report:

Nifty ended with a loss of 0.25 percent at 8924.30. It reacted down from day’s high 8957 to end the session with a hanging man candle. Hanging man candle below the Nifty double top resistance 8980 implies traders are indecisive about the future direction. Intra day recovery from day’s low 8892 failed to recover above early morning high. Hence, buying is not advised except a very few, rather one can look for selling opportunities on rise around crucial resistances as long as Nifty trades below the established double top resistance.On the Nifty hourly chart, it found support around its 100 hourly EMA placed around 8880, as discussed in our earlier note. 100 Hourly EMA is now placed around 8890, which is likely to act as trailing support in coming sessions. However, we prefer being cautious on rise towards its Nifty double top resistance.

Considering Nifty multiple time frames and overall chart pattern that shows, Nifty is unable to breakout its previous double top resistance placed around 8980. Avoid buying at this juncture, rather selective short selling with strict stop loss around 8980 levels may be a prudent strategy. However, UP assembly election exit poles scheduled to be released after tomorrow’s trading session may be a Nifty shorter term trend determining factor.