Nifty opened at our resistance levels of 5810-5815, and immediately took off to trade in the zone of 5835-5855. Once past that, it stopped right at our last resistance point of 5870. We sold near our resistance point of 5860-5870 and booked at 5840.
From the action of the last couple of days, it can be observed that the major moves (Upsides) in Nifty are happening in the very first hour. Thereafter, it cools down and then recovers a bit to close somewhere in between. The effect of this type of movement is that the Weak Shorts & the Weak Bulls, who are looking to square off/ Buy at the slightest of dips are not able to do so, as Nifty remains above the levels of previous day's closing. The Bulls are trying to force them into submission so that they Buy at higher levels. Once these shorts also start to cover, we might see another leg up and then only will the correction begin.
For the day, the immediate resistance comes near today's high of 5870-5875 levels, above which, Nifty may target 5900 levels. On the lower side, Support exists at 5844-5834 levels, break of which will lead to 5815 levels. Overall, Nifty should remain Bullish as long as it trades above 5845 spot. Below 5845, we can see some Profit Booking.
Sep 16 - Nifty spot resistance at 5875-5900-5915-5940. Supports at 5855-5845-5835-5815-5785 - http://www.niftypower.com/
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