Yesterday we saw good short covering in the Banking stocks and mainly due to RIL. Nifty took good support at the trendline (as circled in the chart). The close below 4650 can be bad for our markets. The candle stick pattern seen in the Nifty chart shows that there is a temporary hault in the selling pressure. In the early hours of the trading session we saw bears took the front seat, but in the late hours lost control of the market and bulls replaced the bears. Nifty after making a low of 4634 ( on the trendline ) closed well above 4650 at 4720. But still the trend is not fully turned positive. I do not see any major news that can pull back the markets. Nifty will trade range bound. Keep your positions light. Trade with strict SL. Nifty will face resistance at the long term trendline at 4885 levels. Good support at 4600 levels.
Lower top and Lower bottom formation is still in the making, to break thsi pattern, nifty need to close above 4950. Till that time " NO TEJI ". At 4950 u might get the stocks at a bit higher prices, but at that time we will have the confiramation that the markets are likely to go up. But buying at current prices makes no sense, as we are not in the right positions to tell why are the markets heading towards. Check out the trendline and the patterns, to know exactly where are the markets heading. Major levels are given in the blogs.
Gold prices are again rising. Crude prices are stabalising.
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