In my last blog I have clearly mentioned that the Nifty resistance is at 5400 and it is not easy to cross this level. As a result in the last 2 days Nifty did try to cross 5400 but due to low volumes it closed below that.
As per the Japanese candlestick the pattern, which was made in the last 2 days, proves that the rally for the time being is stopped. The pattern, which is made today, confirms the halt in the rally for time being. The view can be changed as per the candlestick pattern formed within a day or so.
For the new rally the close of the Nifty should be above 5400. According to the FIBONACCI theory 5400 is the 50% retracement level and 5176 is the 38% retracement level.
Buy NTPC with the SL of 198 cmp 204.8. Buy Neyveli above 165 tgt 184 SL 163 cmp 159.1.