Nifty for tomorrow

After three days of bear market rally in Nifty, there is some relief for the bulls.

Last three days volume is dominated by sellers, where we can observe decrease in open interest by 3-5%.

But today there is gain in open interest and volume is dominated by buyers.

today, because of buyers confidence in Nifty, they did not allow Nifty to fall below yesterday close.

Reversal can be seen by clicking on below diagram.

Nifty has entered into BL1 mode on 29-01-2016 but it was unable to enter BL2 although it moved sideways for two days and entered Br1 yesterday. But today movement can have two possibilities. Nifty can move either sideways today or enter BL1 if it closes above 7433.

Looking at the candle stick and volume we can expect nifty to open higher tomorrow and enter bull mode.