On Tuesday after a gap up opening of 39 points at 10802, Nifty made a high of 10813 and due to selling pressure came down to 10689 and at end closed 36 points up at 10799 forming pattern at the top which has a implication.
Oscillators – currently is quoting in a highly overbought zone at 93 while at 71 signaling possible correction in the market.
Now on Wednesday if Nifty doesn’t cross its Tuesday’s high of 10813 and start coming down than expected to take support at 10738 to 10689 levels. If it breaks and sustains below 10689 than may enter into short-term correction and may come down to 10553 and below that 10473 levels where we may see buying in the market.
On the other side, if it crosses and sustains above its Wednesday’s high of 10813 then 10839 will act as the next major resistance where selling is expected, above 10839 it may continue its up move till 10924 levels.