As mentioned yesterday, Nifty after having achieved the bearish Target of 5200 which was given couple of weeks earlier (When Nifty moved below 5750 decisively) has started moving in an otherwise bullish "Declining Wedge" pattern.
While Nifty can continue to slide further within this pattern but Intraday nifty has got Good Support in the region of 5080-5100, Present Pattern has resistance around 5275 and bullish breakout should give minimum 100 Points move within couple of sessions. On the bullish side, intraday nifty which is already oversold which many positive divergences likely to move up to 5625-5690 in coming few weeks. Two important events which can influence the market i.e. 2 Budgets and compromise formula between UPA and Oppositin can induce sharp & short rally in next coming days.
Intraday nifty opened on a flat note since most of the Asian & US markets were flat & mixed. Nifty continued its downward journey to touch an intra day low of 5177 when all round buying lifted Nifty by nearly 140-142 points to an intra day high of 5319 before closing at 5310, about 84 points above the previous close.
As far as, extreme short term charts are concerned, Nifty, which was declining in a bullish "Falling Wedge" pattern having resistance at 5240 gave bullish breakout after touching an initial low of 5177 & rose sharply by nearly 80 points (still short of the target of 5340-5350).
In any case Nifty which lost almost 950-1000 points in last 4-5 weeks had given bullish breakout & also it was in deeply oversold zones which suggested technical recovery to 5625-5690 is still far away from the anticipated targets. Therefore any decline towards the breakout level or below as long as Nifty remains above the "Falling Wedge" pattern shall be an opportunity to go long for next few weeks.
Technically Nifty is also looking sideways for coming days. The next major Strong Resistance in the nifty is above 5545 mark. Nifty future Target and Stop loss for clients only.
Stock looking strong Technically. Indicators showing good up move for next few days. Traders can Buy cash and future for short term. Target and Stop loss only for Clients.
FII’s continued to be net seller so far in this year 2011 for two reasons… Primary reason for FII’s pulling out their investments from here is the strong economical recovery in U.S (We had given alert about this in our Diwali Special Article 2010 itself)... We expect it to continue for a while… Second and Sentimental Reason, they lost their belief when they came to know “The Law-Makers became Law-Breakers here in India” – When Many Politician’s & Govt. Higher Official’s names were screened in Leading Scams & briberies….
We had seen a solid sell off in top rated stocks also – even after they had come out with good set of Q3 numbers… In addition many leading stocks went for a nose dive after CBI had probed them in the recent scam… Because of the above two major reasons traders were forced to sell of their holdings which were kept under margin by their brokers…