Wednesday, November 17, 2010

Nifty movement

Will Nifty hold onto October lows of 5940-5950? A big question mark after today's fall. On Ireland debt and China's possible monetary action triggered Asian markets sell off. Whatever may be the reason, charts are predicting the similar patterns what happened during 4800-5500 levels of Nifty between February and May.

Coming to present present fall, Nifty witnessed successive fall forming large "BEARISH ENGULFING" patterns. Nifty for time being should find support at 596o levels, if that level breaks this CORRECTIVE PATTERN should find the 5880-5860 which is also a 100 day moving average support and trend line ending point. Even RSI is also not showing overbought condition in its oscillation. If that breaks then I feel there will be a lot of selling pressure and fresh shorts may be created in the market.

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