Dated :- 22.12.2013 (SUNDAY)

                                                        NIFTY  Spot :   6274.25

Hi, 

Readers,

Nifty did exactly the same as was mentioned in my last blog dated Dec. 15, 2013. As was mentioned, Nifty rebounded.

It was clearly mentioned in my blog that Nifty is poised for rebound and that bound will decide the fate of Nifty going forward.

Rebound was predicted in the blog in spite of a strong bearish reversal pattern (ISLAND REVERSAL PATTERN). And Nifty did actually rebounded and closed at the highest point of the week.

Now What  :-

Nifty rebounded up to 6284 and in general mind set of traders would be bullish.

But I would like to give a caution here.

There are some times in the market when one has to wait for some time and play cautiously. This is that time.

Because this rebound has to go and sustain comprehensively above 6420 for this rebound to be effective. Multiple technical indicators are showing that crossing 6420 and sustaining above it is not easy for Nifty.

And if Nifty does not cross and sustain comprehensively above 6420 then it will be inclined to come down. For next week 6200 is very important level, below which the Nifty shall trade with –ve bias. Breakdown of Nifty shall be below 6150.

Recommendation :-

Do not be an aggressive buyer in Nifty wait for it to come down below 6200 when it will trade with –ve bias and below 6150 breakdown level of Nifty. Where there will be shorting opportunities. Trade accordingly.

Till than watch and step aside and wait for next course of action as & when it happens, it will be updated on the blog.