Resistance
6250, 6275
NIFTY crossed the 21-day EMA, which was acting as a support for past several days. The 21-day EMA now can act as a resistance. NIFTY closed just below the 21-day EMA on friday. It needs to be seen if NIFTY successfully closes about the 21-day EMA in the comming sessions. A Red monday signals the weakness of NIFTY to cross the 21-day EMA line and can result in bearish signal.
Support
6170, 6150, 6120
The gap in NIFTY on intraday chart strongly supports NIFTY at 6170, where as other two supports are not so strong and should be used with caution.
Other observations
In our last week's post, we had mentioned that, on weekly chart, NIFTY is forming a wedge pattern. NIFTY failed to break the wedge in the last week and the result is that this week NIFTY will need more strength to break the wedge. If NIFTY successfuly closes above 6400+ in the coming week then that can signal that NIFTY has gained enough power to break the wedge positively. Understand the importance of this wedge, if broken, it can take NIFTY to 7000+ levels.
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