In my last post about Nifty Future based on Hourly Chart I spotted a Double Top and told the target to be around 2500. Today Nifty Future came down to almost 2650 and then some short covering (possibly) saved it to close near 2800. Here I present my views based on the Daily Chart of Nifty Future.
First let me explain objects on it:
Gray Curved Line : 5 Period EMA
Green Curved Line : 13 Period EMA
Red Curved Line : 34 Period EMA
Blue Curved Line : 55 Period EMA
Purple Curved Line: 200 Period SMA
Looking at the Daily Chart, Nifty Future trend is clearly down as the EMA sequence is negative along with falling series of highs and lows. The rally that followed after last month's low resulted in Double Top, which created a downside breakout on 12th Nov.
As I told the target of that Double Top to be near 2500, there is one big incident if that happens. The Fibonacci retracement of 61.8% of the total up move from 27th Oct to 14th Nov is at 2626. This means if we achieve the Double Top target, it will mean all the significance of that up move is lost and chance of a retest of Oct low resurface significantly.
Bulls need to save 2626 at any cost, otherwise all their hard work will be in grave danger. For Bears, they need to give bulls some room so that they can pounce with greater force. I still maintain the view that primary trend is still bearish and all rallies are nothing more than but good selling opportunities.