After a calm first half with the market steadily moving upwards, it turned tide in the latter part of the trading session becoming equally volatile and to fall below the psychological support level of 14,900. On the daily chart, the Nifty has formed a bullish continuation pattern.
However, it should not break the level of 14,770. Otherwise, it would re-test the level of 14,650. At the top, 14,920 and 15,020 would be major obstacles. After the dismissal of 15,020, the Nifty would move to the level of 15,150. Trading long with a final stop loss at 14,770 could be the ideal strategy. The Indian rupee fell to 74.75 levels, which is negative if it continues for the next few days.
Analyst: Shrikant Chouhan, Executive Vice President - Technical Research