Dated :- 23.05.2013  (Thursday)           NIFTY  :   5967.05

                        Please click on the chart to enlarge it

                                    Note :- Blue line is of Bollinger Band

Hi,

Readers,

In last blog it was mentioned that Nifty is not breaking lower line of Bollinger Band on hourly chart and if that holds then rebound may come. But today Nifty opened below that Bollinger Band and stayed there showing breakdown (as shown in the chart above) supported by bad news from U.S. and Japan where there was lower circuit in Japanese markets. Breakdown in Nifty since it closed below 6128 supported by weak indicators intensified today and Nifty traded all through the day with –ve bias. Now there is a small support is at 5920, but, next logical support in the Nifty is around 5850 levels, which also happens to be 50% retracement level of current up move. One must understand that market can not go down 100 points daily, so, after such a fall from 6230 levels choppiness(up & down swings) in the market is expected.

By the grace of GOD all the oscillators and indicators as mentioned earlier showing weakness are working as expected.