Nifty Future chart July Series :
Perspective : The overnight sell-off in global markets based on Italy and a suspect Spain sovereign debt default, should call for a weaker open and a large gap down.
A gap is considered as non-visible single prints. In a gap open, it is important to wait and see the cash market’s open to the new levels. A failure to fill the gap can pressurize exiting positions wheres a filling of the gap shows the new activity to be suspect or less strong. The gap down held this morning will pressurize recent longs whereas filling will indicate there are no new sellers.
Back Ground : We spoke about 5640 and 5607 in our weekend post, both of which were hit in yesterday’s market. This market has now new information and we have to moiitor the response based on this new information.
Chart Speak :
– 5546-5551 is likely support.
– low volumes between 5596- 5560 on the previous rise can be the market’s focus today.
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