Dated :- 20.05.2013 (Monday)

Hi,

Readers,

Its all God’s grace. Nifty did exactly what was mentioned in yesterday’s blog. It opened at 6198 and made a high of 6229.45 and took resistance there and then made a low of 6146. Those who have followed would have booked profits at higher levels. There was an intraday short when Nifty broke level of 6196-6197, professional traders should have taken short trade and I suppose part of the profit would have been booked today itself.

Nifty today has made bearish engulfing pattern on the daily chart, RSI showing –ve divergence and other indicators have started giving signals of weakness. But one day is not enough wait for follow through tomorrow is justified. Still Nifty level of 6128 remains important level below which the weakness In the Nifty will creep in more. Till then choppiness in Nifty is expected.

Now Nifty chart is saying that to touch level of 6283 is increasingly becoming difficult and level of 6250 to 6283 are now even more tough resistance to cross.

Above is the hourly chart of Nifty which is also signaling that below 6128 more weakness shall come in Nifty. So, keep reading the blog. But remember till the time Nifty does not give complete breakdown choppiness shall be there.