Nifty didnít donate follow up of doji candlestick in upside which is a sign of that weakness is intact.
Nifty witnessed breakdown of rectangle formation on daily chart which is signal of further downside.
Nifty has next significant support line 5970 mark.
50-day SMA is placed at 6217 mark which will be resistance at any pull back while 200-day SMA at 5965 will be key support in downside.
Momentum indicator RSI has slipped below 50 mark while stochastic is heading towards oversold territory.
CCI is placed at -130 mark & MACD witnessed centerline crossover.
STRATEGY FOR TRADERS:
As SGX nifty is suggesting market is going to open with a huge gap down which is likely to extend towards next significant support of 5972; hence traders are advised to remain short for target of 5972. Read Original post
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