Nifty 50 has formed a bullish wedge and has taken support at the weekly R1 (14900 level). US markets have rallied sharply today due to employment data released today which will definitely have an impact on the Indian market. Tomorrow a gap up opening can be expected. Target 1 for tomorrow would be 15050 and then 15120 on the upside provided the gap sustains for the first 15 mins. If previous day low which is 14880 is broken, we can think of shorting then and only then. I expect previous day low to hold since the only thing pulling our markets down was the global sentiment since local sentiment (covid cases etc) seems to be improving. Expecting Nifty to trade between 14880 and 15120 for tomorrow. Market has corrected from the recent rally and is poised to resume the same if the week closes above 14980. Market would then enter into expansion mode.
Comment:
SGX Nifty indicates an 80 point gap up - so will be interesting to see if the market would then come back to around 14950 and then take support to retest the high of the day or the market will continue to rally right from the opening . Price action in the first half an hour could indicate how tomorrow will play out.