Above is a daily chart of Nifty. Here I want to show that why 5200 is a very important level for the Nifty. On chart I have shown retracement level from different tops which were made during the fall from 6336 to the bottom made in August at 5720.
5260 is a 33.3% retracement level from 6336 to 4720.
5208 is a 33.3% retracement level from 6178 to 4720.
5190 is a 38.2% retracement level from 6944 to 4720.
5208 is a 50.0% retracement level from 5702 to 4720.
All the levels above shown are around 5200.
This 5200 level has been working as a support and resistance for the Nifty in past also. It is seen in the chart that up and down arrows are working as a support and resistance respectively for Nifty.
In the month of September Nifty went to 5170 twice and from there it reversed. So, all this retracements levels and past support and resistance level confirms that 5200 is very much important for market and if it breaks above that level then Nifty can go higher levels.
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