Nifty heading towards 5400…

Nifty as on 05/04/2013 – 5553.25

nifty as on 05 Apr'13-5553.25

nifty as on 05 Apr’13-5553.25

Last to last week, I was expecting nifty to test 5800 mark and turn lower subsequently, but nifty made a high of 5754.60 and took a sharp reversal in last three trading sessions.  I already anticipated on last Thursday that nifty will move further lower, and that is why I asked to get out from given buy call, and recommended to go short to some of you, and I know they have minted money.

Now, I expect nifty to lower further towards 5450-5400 levels. One is very clear in attached chart, that nifty broke the support of its 38.2% (5600) Fibonacci retracement of last major up leg, and now heading towards 50%  & 61.8% which comes at 5445 & 5284 respectively.

So from current level, two possibility can emerge, one, nifty move higher from current level which is highly unlikely, and secondly, nifty continue to move lower. Looking at current development, and price structure I feel that nifty will move lower towards 5445-5400.

In forthcoming session nifty will move lower or not, will be confirmed by Monday’s price action, if nifty opens below or near 5550 than wait till 5535, and go short with stop loss of 5580. And if nifty holds above this level, then don’t hurry to take any long call, if it happens than I will update, because it will be much dicey situation to tackle with.


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