Nifty tested an intra-day high of 3717, could not able to break the crucial resistance of 3720, and finally closed at 3625. Stocks which moved up substantially in the last few trading sessions have witnessed profit booking. DLF, ICICI Bank, HDFC and HDFC Bank were the prominent among them. The ongoing rally is losing its upward momentum due to over bought situation. The weekly RSI is above 88, clearly showing the over bought situation, a part of the broking fraternity is also worried about the Stress Test results of Bank in US.
The key support for the Nifty will be at 3590, if Nifty falls below then it may find nearly 100 points lower support, because of gap filling. On the other hand movements above 3700 still be possible for the Nifty, in that case it may test 3750 and 3800 levels.
If we use probability at this juncture the probability of Nifty to move above 3803 would be 35% and probability of Nifty to move below 3427 would be 31.57%.
The key support for the Nifty will be at 3590, if Nifty falls below then it may find nearly 100 points lower support, because of gap filling. On the other hand movements above 3700 still be possible for the Nifty, in that case it may test 3750 and 3800 levels.
If we use probability at this juncture the probability of Nifty to move above 3803 would be 35% and probability of Nifty to move below 3427 would be 31.57%.
