Analysis for July 21

Strength: Nifty has closed above the Week and Day Lema

Weakness: Nifty has closed below all High  Ema.s and 5Ema's. The 5Ema has moved below the 5Sma. Ns has closed below all pivots. A bearish engulfing pattern is formed in Nifty day charts which is to be followed by price action.

Trading above the Day Lema and Pivots would give some intraday strength for a bounce upto 5595-5610 levels. Trading below These levels would render weakness in Nifty

5510 - 5515 50 sma  may provide support for an intraday bounce, closing below which would take NS to 5404 - Month Lema

The Rising wedge pattern has been penetrated downside. NS opening below the Trendline and not creeping into the rising wedge area again would be a bearish scenario. This would also be a price action confirmation for the Bearish Engulging pattern.

Action Plan for the Day:

Sell Below 5556 with SL above 5560 Hourly Closing book partial profits at 5510-15 levels.
Add more shorts below 5500 with revised SL at Hourly closing above 5510

Buy above 5560 with SL hourly closing below 5550. book Profits at 5580-95.
Hold longs only on a firm close above 5610-15 levels