We have witnessed a strong recovery in Nifty within a quick span of around 2 months along with decent volumes.
Now, Nifty is approaching it's long term resistance level which will surely test the strength of the Bulls. If it fails to break the resistance level, it should at least sustain at current level for several trading sessions which could result in a strong breakout. Traders have to be extra cautiious before entering into a long position at current level as we haven't seen a clear breakout yet.
If Nifty fails to cross the resistance, a fall of around 500-700 points could be seen quickly before it finds a support.
The above analysis is just for educational purpose. Traders/Investors are advised to do their own reasearch before making any decisions.
Now, Nifty is approaching it's long term resistance level which will surely test the strength of the Bulls. If it fails to break the resistance level, it should at least sustain at current level for several trading sessions which could result in a strong breakout. Traders have to be extra cautiious before entering into a long position at current level as we haven't seen a clear breakout yet.
If Nifty fails to cross the resistance, a fall of around 500-700 points could be seen quickly before it finds a support.
The above analysis is just for educational purpose. Traders/Investors are advised to do their own reasearch before making any decisions.