Dated :- 28.07.2013 (SUNDAY)

                                                                              NIFTY  :   5886

Hi,

Readers,

As was advised in the last blog that Nifty movement is very suspicious and it was advised to exit all longs positions. It was also cautioned that next movement of Nifty will be of downside when the Nifty was at 6029.

Nifty justified the analysis and came down sharply.

Now today when the Nifty is at 5886 what next:

Before giving you analysis let me explain the current scenario of Nifty:-

Nifty close below 5850 is a sell and a fresh downside will open.

Nifty close above 5985 some more upside levels are possible.

5915 level is also becoming important level. Nifty above 5915 one should not be a seller, but longs are advised only above 5985. Nifty below 5915 one should not be a buyer, but shorting is advised only below 5850.

Now analysis:

After sharp fall from high of 6093 Nifty is showing interesting movement wherein 5850 is a very important breakdown level and 5985 is a level above which more upside is possible.

Nifty charts and multiple indicators are showing that 5850-55 is very important & strong support. No fresh downside will open unless Nifty gives close below 5850 comprehensively. This support has significant strength to force Nifty to rebound.

But the point here is that till what level this rebound will go. Should one make long position in this rebound, the answer is NO. Long position in Nifty is justified only above 5985.

What if, Nifty do not hold this support and closes below 5850 comprehensively, in that case go short & more downside levels will open.

If 5850 support did not hold than technical structure of Nifty will be negatively dented and bears will start smelling blood.

Within this range of 5850 to 5985 trade with caution keeping 5915 in mind and book quick profits.

This 5850 to 5985 is a log-jam range. Trade cautiously.