Nifty had closed below the very crucial support zone of 4780 level which includes 38.2%
Fibonacci retracement and lower channel band.
A downside channel was plotted earlier by curving two parallel trendlines. The upper band
(trendline) was plotted with joining the previous multiple tops while the lower band was plotted
with a parallel trendline of the above mentioned trendline commencing from the 5177 low. On
extended that lower trendline it had provided support on last week and bulls had also made a
minor pullback from those levels. But on last Friday this particular channel was breached
downside.
Another major support that bulls were eyeing was 38.2% Fibonacci retracement level of the total
upmove from 2252 towards 6338 and the relevant value comes around 4777. This was also
breached in last Friday trade.
The next major support zones for bulls comes around 4675 and below those a drift towards 4500
levels can happen. Any pullbacks could carry Nifty towards 4960-5030 levels.
Fibonacci retracement and lower channel band.
A downside channel was plotted earlier by curving two parallel trendlines. The upper band
(trendline) was plotted with joining the previous multiple tops while the lower band was plotted
with a parallel trendline of the above mentioned trendline commencing from the 5177 low. On
extended that lower trendline it had provided support on last week and bulls had also made a
minor pullback from those levels. But on last Friday this particular channel was breached
downside.
Another major support that bulls were eyeing was 38.2% Fibonacci retracement level of the total
upmove from 2252 towards 6338 and the relevant value comes around 4777. This was also
breached in last Friday trade.
The next major support zones for bulls comes around 4675 and below those a drift towards 4500
levels can happen. Any pullbacks could carry Nifty towards 4960-5030 levels.
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