Dated :- 05.06.2013  (Wednesday)               NIFTY  :   5923.85

Hi,

Readers,

Nifty has done exactly what was mentioned in my last blog on June 01, 2013 (Saturday).

Let me quote my last blog’s lines :-

“You should be short in Nifty below 6050 with the aim that Nifty may go to 5920 levels and try to break it to go down further. This 5915-5920 becomes very crucial level and Nifty sometimes show volatility around important levels before giving breakdown. Thus, around 5920 sit and decide your risk and reward appetite to swallow that volatility. For traders, pyramid shape profit booking is also advised as it is always prudent.”

Nifty on Tuesday took support at 5915 and then rebounded to 5980 levels and again came back to close at 5920. Today also Nifty showed high volatility keeping 5920 as fulcrum point and ultimately closed at 5924. Stiff support of 5915-5920 is working and volatility/up down swings will continue.

These up down swings will continue before breakdown in Nifty below 5915 and further on final breakdown of next logical support of 5850 (which also happens to be 50% retracement level of the upmove) will open the doors for levels of 5600 to 5700. Around 5600 – 5650  there  is strong technical support and this also happens to be the target of bearish head and shoulder pattern breakdown. But one must understand that Nifty is not in hurry to reach to these levels and Nifty will dodge time and again to reach this level.

Enjoy the profits.