NIFTY : 5867.90
Hi,
Readers,
The Nifty has
done exactly as was mentioned in my previous blog on July 02, 2013 when the
Nifty was at 5857. It was clearly
mentioned that Nifty will give both up and down tradable moves between the range
5750 to 5900-5950 in coming days. Nifty did exactly the same. It went down 100 points and touched 5758
i.e. the lower end of the range and rebounded from there to 5900 levels to
touch the first upper end of the range.
As
mentioned earlier also Nifty has stiff resistance between 5900 to 5950-70 levels and the strong
support is at 5700-5750 levels. Nifty is also making bullish head & shoulder pattern(inverted
head & shoulder) the breakout of which is above 5930 levels and this
pattern has an upside target of around 300 points after the breakout. This bullish
head & shoulder breakout level is increasing daily by a few points, as of
today it is at 5930. But since the range has an upper end at 5950-5970 then
logically I consider that the breakout of inverted head & shoulder shall
also be assumed to be at 5970.
Coincidently,
Upper line of Bollinger band on daily
charts is at 5960 i.e. at the upper end
of the range of Nifty mentioned above. Which also indicates that till the range
does not break upper end, up move in Nifty is difficult.
Breakout
of this range on lower side will dent the strength of Nifty
on daily charts, weekly charts and will have full downside force of hourly
charts. And breakout of this range comprehensively on upside will fuel more
strength in weekly, daily and hourly charts.
Remember
in these type of circumstances sometimes smart operators give false breakouts/breakdowns
and then almost immediately they reverse. Be careful for that also.
Enjoy
the profits and trade with caution.
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