DOJI! A confused state of mind. Couldn’t have done better than this, with a poor closing from DOW last night, and with no particular negative triggers domestically we had to end up confused! Nifty opened firm, inline with yesterday’s trend. The overhead resistance at 4190/4200 proved tough to overcome so we took the path of least resistance which was; Down. Once yesterday’s close caved in Nifty took support at exactly the same level where yesterday we had spent a considerable time consolidating before breaking out. The 4110/4115 levels. In fact in my post yesterday, I had mentioned that if Nifty pulls back to 4110, then one can take a small long with 4050 as stop. This level of 4050 is getting to be very important for the bulls to defend and bears to crack. The reasons are given in the chart below which I hope is self explanatory. They say a picture is worth a thousand words, therefore I am wrapping today’s post here and let the chart oops I mean let the picture below talk! Comprende ?
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