A wide ranging day pattern showing a large intraday range with the opening and closing around the middle of the rangeis what happened on wednesday.It does signify that whenever such a pattern is formed, after a sharp downswing lasting for a few sessions, it suggests that the earlier trend has exhausted itself and the market has become directionless. This means the vicious downswing of the last four sessions has probably come to an end. Either there will be a narrow range bound movement before another directional movement is noticed or a sharp spike up in order to mark the resumption of the earlier intermediate uptrend. So long as we don’t see the index getting past 6750 it would not be out of the woods.
- Most critical levels: 6711 – 6722
- Strong resistance: 6739 – 6745
- Major resistance: 6780 – 6806
- Strong support: 6656 – 6643
- Major support: 6591 – 6567
As said above the wide-ranging day formation and its likely bullish impact on subsequent trading days. Thus, we need to keep a constant vigil for the intraday price swings where crossing the levels between 12918 and 12936 would be signifying real strength. Unless it trades below 12860 for considerable period, the weakness would start diminishing and getting past 12936 would be like crossing a major hurdle but once it succeeds it will move up with real strength.
- Most critical levels: 12861, its first resistance
- Strong resistance: 12918 – 12936
- Major resistance: 13055 – 13176
- Strong support: 12797 and 12738
- Major support: 12711 - 12514