Finally, Nifty recovered at the end of the session and posted a positive close. RSI halted at 30 – levels and curled back. 30 levels on RSI are over sold levels, generally stocks/indices recover after reaching oversold levels.
This pull back don’t assure up trend resumption as of now. Have a look at the chart the negative DMI is dominant and the MAs on the RSI have also curled down. 11540 levels are very strong resistance on the daily charts. Nifty may find hard time to clear this level.
Let us drop down to the hourly charts and take a look at Nifty’s intention there. Well very clearly the dominant trend there is DOWN!
RSI pulled up from deep oversold areas. The negative DMI is dominant, 11390 levels are important resistance levels. Above those levels 11540 becomes evident. Booking profits (if gone long) near 11390 is suggested. 10900 shall act as a critical support levels for Nifty.