#NIFTY Weekend view on the 17th February.
Today the index did exactly what we expected. On the 13th we saw a successful
non typical “Test” for supply and we expected an attempt to take out the tough resistance
around previous Price Rejection level 8811 very soon. I am quoting from the
post of the 13th. [The move though not a classical “Test” does indicate
strength…… So we can see an attempt to take out 8811 very soon if not tomorrow.]
Today we saw that attempt. We saw a gap up opening at 8883. However the supply
overwhelmed and finally we saw the index close near the lows of the day, but
still 43 point up from previous close and above the crucial level of 8811. The
intraday day reveals more. After the gap up opening, supply quickly overwhelmed
demand and the index sank to the low of the day. But soon demand came in trying
to take the index up to 8860 levels only to be taken down again by supply. Demand came in again but did not succeed to
make much gain but still closed above the crucial 8811 level. Today we crossed a crucial levels and the
demand was persistent trying to overcome the supply. This is a positive sign. Though
the Bar on a standalone basis gives a signal of weakness there is actually strength
in today’s move. Also the region 8811-8792 could provide some support. I had
previously mentioned that the journey till 8950 will be a struggle. Next week
we expect more upside moves. We are
again reminded that we should always read the Bar with the back ground in
picture and looking at lower time frames for a detailed view and never on a
standalone basis.
