Dated :- 22.05.2013  (Wednesday)  NIFTY AT: 6094.50
                               
                           

                              Please click the chart to enlarge it

               

Hi,

Readers,

Today Nifty opened exactly below 6128, made a high of 6147 and then came down to made a low of 6074 and closed at 6094.

As mentioned in earlier blogs bearish engulfing pattern and –ve divergence in Nifty is working and Nifty gave a close below 6128 yesterday and today also Nifty traded with –ve bias whole day and those who went short yesterday and any time today would have made profits.  

Nifty in its hourly chart today has done an interesting thing (as shown above in chart) it has not broken down Bollinger Band line even after 3 attempts and is trying to take support on white line shown in chart. This shows that tomorrow if this Bollinger band is not broken than you may witness rebound in Nifty which may take Nifty to 6150-6180 levels. But be sure that No positional longs should be taken here and even if anybody who has not followed advice before should use this rebound to exit. Any rebound in Nifty from here should be played intraday only or to exit longs.

Also today night, in U.S., we have Ben Bernanke testimony in which he may talk about his plans for continuation/discontinuation of QE. If something positive comes from there then an expected rebound may force week hands to cover shorts. Technically Nifty is still making higher highs and higher lows i.e. uptrend has not yet ended, but oscillators are showing distribution.

Keep booking profits in shorts wisely (don’t be greedy) till Nifty does not break higher highs and higher lows pattern.