Good Morning Traders,

There is sea of red across entire Asia ex Japan which is closed today.  The US jobs data which led to 1.54% decline in S&P 500 on Friday is having its effect on Gift Nifty also which is showing -180 pts gap down opening.

Today we will open below the swing low of 23263 and from that level we need to see how the market behaves. Ideally as per the technical analysis break of 23440 - 50 WEMA lead to target of around 21900 which is the 100 WEMA. That is the level where I am seeing some sort of very very strong buying emerging. We may go 400-500 pt up from 23200 but ultimately it will test 21900 which is the 100 WEMA and my bold call is that it won’t break. 

This week we have India inflation figure on Monday and US inflation figures on Wednesday. Some bouts of short covering will definitely come but view should be clear. First resistance -23700 then 23900 followed by 24100. 

Support will come at 23200 followed by 22800 and 22500

#niftyfuture