Nifty 03 Feb’21: Tale of 2 New Channels

Now a 3-day bounce back from the benchmark Nifty with yet another positive session in yesterday’s trade. We did however observe some decent degree of intra-day volatility which is primarily led by profit taking at higher levels. The index on the daily time frame has now defined two new rising channels. Resistance can be expected from the upper border of these channels at levels of 14,900 and then between (15,200-15,300). Price-momentum divergences too are shaping up, so it wouldn’t be a bad idea to be a little cautious going ahead. Strategically long positions should be booked and/or stop losses trailed aggressively.

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