In the last four days the Nifty has shown an amazing bounce-back from a low of 5500 to a high of 5794.35, a movement of almost 300 points. That is an excellent bounce-back, especially when we were expecting the Nifty to go lower to 5200 levels. Well, we are still looking at those targets, this is just a temporary pullback that we are seeing. The pullback was expected, especially on seeing the support the Nifty was finding near the 5500 levels. Negative news including the Infosys results failed to take the index below the 5500 levels. I had warned about the pullback on this site too when I said that it is time to be careful. This warning was given earlier but since it did not come about that time, it came now.
This website contains discussion and analysis of securities trading in NSE, BSE, MCX and NCDEX. All securities are analysed on Technical charts and an effort has been made to predict the future movement of these securities.
Saturday, April 20, 2013
Sunday, April 7, 2013
Bearish Head and Shoulders Pattern in Nifty? Target 5200
Thursday's close was a bit too hard for the Nifty to cross on Friday. Thursday's close was 5574 while Friday's high was 5577 and while the Nifty made at least 4 attempts to cross it decisively, it couldn't. Those are the signs of a weak market, of a market gripped by bears. the low made by the Nifty was 5534 but finally it managed to close a bit higher at around 5553, which was still 21 points in the red as compared to Thursday's close. It seems that the Nifty is still on its way down and with a much bigger target. There may be minor supports in-between which have been discussed below with the help of the charts shown.
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