The gravestone doji at the top and the fact that NIFTY was unable to move past 4611 yesterday proved to be a good enough confirmation for the reversal. It came as a clear downtrend day and even a small bounce at 4550 levels also did not happen.
It looks like NIFTY is all set to test 4340 levels and get some support there. If that is also broken, then the immediate level to test is 4276 which also happens to be the extrapolated 20 DMA levels for NIFTY.
On the upside, 4508 is a strong resistance level. If 4340 levels is not tested and NIFTY is moving up towards 4508, then it can be sell on rise with 4340 as the target. Only on a break above 4560, the uptrend can continue which looks remote as of now without testing 4340 levels.
Resistance levels : 4487, 4508, 4560
Support levels : 4384, 4363, 4341, 4276
Happy Trading
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