Dated :- 28.05.2013  (Tuesday)             NIFTY  :   6111.25

Hi,

Readers,

Here are the quotes of my last blog of May 23, 2013 :-

 “There is a small support 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 cannot go down 100 points daily, so, after such a fall from 6230 level choppiness(up & down swings) in the market is expected. “

It was mentioned in last blog that there is support at 5920 / 5850 and up & down swings will come. Nifty went down to 5936 and took support of 5920 and started rebound from there.

Also, as cautioned earlier that Nifty is still making higher tops and higher bottoms thus timely booking profits in shorts was also advised. Result is in front of you, those who ignored caution may be cursing themselves.

Now, what the Nifty chart is saying today:-

Nifty is still below 6128 which was the breakdown level mentioned earlier. Till the time Nifty does not close above 6128 bearish bias stays and shorting shall be done only below 6050 with strict stop loss of 6130.

Nifty with this rebound is also trying to pump some strength in its weak indicators. Holding of support of 5920 means that this move of Nifty on up side should be played with open mind i.e. putting cap on it with levels is not good as it now has put Nifty into a wider range between 5900 to 6250-6300 levels.

Nifty has today made bullish head & shoulder pattern on hourly charts with breakout at around 6107 level. Smaller range is between 6050-6130 levels. Breakout of smaller range on either side will give opportunity to take intraday trades. Between 6050-6130 it is no trade zone.

Charts indicate that if 6300 is not taken out next correction whenever it comes will be a good one. Again there is caution, this move should not be used to make long positions till 6300 is taken out.

Beware, there can be uncertain moves as expiry is on this Thursday(day after tomorrow).