Nifty is standing at short term support.

Intra day charts for the Nifty suggests support coming in at 4570 approximately. The 60 minute chart also shows a rounding top and a bearish head and shoulder with a neckline around 4570. This zone becomes significant in deciding if the Nifty will breakdown and move towards a deeper correction, or bounce back above 4600.
Since 4570 is closeby, traders may like to take long positions on dips with a stop below this support.

Gaurav asks: “The current pattern on Nifty daily charts suggest a triple top or ascending triangle? Both these patterns have a opposite interpreation. On a longer term basis we also see a inverted heads and shoulders with neckline around 4700. Sir what is your opinion on all these patterns?”

My Notes: A triple top – yes (June, July, August) but an ascending triangle is difficult to locate. The triple top is confirmed if prices breakdown from the valley created around 3950, so it requires a lot of decline before it is confirmed. We should use a trading range between 4740 and 4350 to determine direction. On the longer term we have the inverted H&S with neckline around 4760. This column has written about it earlier on several occasions. The trading range breakout will also confirm this pattern, so we just have to wait and watch.