Tomorrow's trade will be important for the short term reversal . Following are important observations that will help in Nifty's trading tomorrow.
1. The upmove ended the day with a prominent Negative diversion. Hourly charts are overbought as well as close is nearby Resistance zone of Patterns and Price.
2. Remember that the 50dma is apprx. at 5500 level. Any close above it will signal a short term reversal.
3. The Weekend Post indicated at a Resistance level at 5510 level. CLICK HERE
4. Trading below High volume node of 5470 will bring intraday weakness and Supports will come at the Daily Pivot at 5455 level which is also the approx 20dema level. Below it will get support at volume node at apprx. 5420 level. Close below 5420 will signal weakness again.
5. But trading above 5510 levels will bring in bullishness associated with short covering upto 5540 level apprx. Close above 5540 will open way for Longs targetting 5600 level.
6. In a nutshell , weak below 5470 and bullish above 5510 level. One can manage tomorrow's trade with intraday SAR of today's close level at 5480 and book out at important levels mentioned above on both sides.
Trading light and nimble should be adhered to.