Hi, Today we saw a gap up in opening and prices opened and stayed above the resistance of 8800 I identified but it could not close above it and the gap was filled closing at 8766.3. The trendline was broken and a false signal was given. As the prices closed below 8800 we can say that it will act as a resistance ahead going forward. Here is the hourly chart today. For the past couple of days there is a pattern occurring i.e Prices open positive move upside break or touch some resistance and then at the second half encounter heavy selling and closing negative or towards the opening price itself. This could be because of the budget and only on Monday should we see the range bound moves of Nifty break and start a new trend.
Tomorrow is the day of expiry and also the Railway Budget will be revealed, so trade with caution as a volatile day is expected.
Important Price Levels for tomorrow Supports – 8730, 8700 Resistances – 8800, 8840