Nifty has come down sharply during the last week.Now everyone is talking about long awaited deep correction ahead of Gujarat elections and rising crude oil prices. However, on viewing Nifty 50 charts we got following points to keep in our mind
Daily Chart
Nifty fall & closed near long term trendline. RSI (5) is in oversold zone. Nifty has completed 50% Fibonacci retracement of last move and it is also visible that there is a short term trendline support near 10,110-120. So We advise you to add/hold longs keeping stoploss@10,100 on closing basis.
Weekly Chart:
Yes, stock is looking weak but managed to closed above 20wMA. However breaching this level (10,100) can open ways for 10000-9950-9833 Stop for shorts/ targets for longs will be 10235-10380. Technical indicators on weekly chart are on sideways to negative zone which indicates further fall.
Daily Chart
Nifty fall & closed near long term trendline. RSI (5) is in oversold zone. Nifty has completed 50% Fibonacci retracement of last move and it is also visible that there is a short term trendline support near 10,110-120. So We advise you to add/hold longs keeping stoploss@10,100 on closing basis.
Weekly Chart:
