After a long weekend the Bulls were back in action. Markets opened positive with a gap. Sensex opened almost 150 points up. Buying in the heavy weights helped the markets to remain up strong. RIL & ONGC the major contributor closed nearly 2% higher. Sensex closed at 1682 higher up by 160 points. Once again Nifty closed above 5000 levels. On Friday Nifty closed at 4958 after facing resistance at 5000 levels. But today the Indices opened up strong on back of the surged in the global markets. Nifty too good support at 4958 levels as mentioned earlier. But still closed below its resistance levels of 5013-5019 levels. Nifty will continue to have support at 4958 levels.

BUY ONGC above 1200.
SELL SBI tgt 2040- 2015 levles
BUY Sesa goa with SL of 258

Week started with the BANG. Nifty crossed 5000 mark and closed at its 18th month high at 5020 levels after making a high of 5036 levels. As mentioned earlier in the last article and on my personal blog (www.technicalsvishaldangaich.blogspot.com) that the Nifty will face resistance at 5013 – 5019 levels. On the first day of the week Nifty closed above the same, but slipped down immediately on the next day itself, forcing Nifty to close below at 4969 levels. Nifty took support at the trendline. For the next 2 days. On the expiry day Markets opened deep in the red zone, but the smart pullback in the late hours helped the markets recovered sharply. Nifty closed at 4986 levels after making a low of 4904 levels in the intraday. But closed higher in the late hour’s short covering. Nifty on the last day of the expiry made a Long shadow pattern at the higher levels. As mentioned in my last blog that the Nifty will continue to face selling pressure. Nifty on the last day of the week, opened negative and continued to be in the red zone for most of the day. Nifty made a low of 4931 before closing at 4953 levels.

Markets corrected a bit as mentioned in my last article. Nifty will continue to face resistance at 5013 – 5019 levels. Nifty close below 4953 will take continue to slip till 4899 – 4857- 4808 levels. Two consecutive closes above 5013-5019 levels may trigger further buy 5036-5071 levels. Nifty will take support at the trendline marked in BOLD. RSI is trending down. Cautious is advised.

Last day of the expiry had been proved to be good for the bulls. Last hour rally helped lead the markets recover all its lost glory. Sensex which was trading down nearly 150 points surged in the late hours due to short covering in the F&O counters. RIL, HDFC Bank surged heavily in the late hours. Indices opened up week on back of global weakness. For most of the day the Indices remained in the red zone, but surged in the last 1 hour. Nifty tanked in the early hours and made a low of 4904 levels. But turned down positive to make a high of 5016.7 levels, but closed 5000 mark. Nifty closed at 4990 up 20 points. Sensex made an intraday day low of 16494 and surged to 16834 levels. Sensex gained 62 points in the late hours and closed at 16781 levels.

As mentioned in my recent blog this writer had informed, that the Nifty will face resistance at 5013 levels and to remain cautious in the markets. Nifty this made a high of 5036 on Tuesday. Slipped down to 4900 levels today. Nifty chart had made a Long Shadow pattern that indicates that the sellers dominated during the session and drove prices lower, but the buying in the end of the session and the strong close created a long shadow. But this pattern have been made at the higher levels. Nifty is still facing resistance at 5013 levels as mention earlier also. Nifty closed just above the thin trendline. The confirmation of the trend will be decided on the pattern on the next trading day only. Acc to todays rally was just a shortcovering on the expiry date, but tom the mkts can come down again, Nifty will find support 4846 levels and resistance at 5013 levels.

==>> Breakout pattern

Today Nifty has given breakout pattern in the charts. Nifty closed at 5020 after making a high of 5036. Nifty will face resistance at 5055 -5070 levels. Nifty has closed above its major resistance level of 5013. RSI is now in the over bought zone. I would like to advice the readers of this blog to remain cautious in the market. Book profits on every rise.

5000 Mark just kissed, but ‘Cautious’ the word in town

Nifty started the week by closing in red. Nifty closed down 20 points on Monday. Nifty closed below the trendline, but the next day the Markets bounced back sharply. Nifty closed at 4892 after making a high of 4899. As stated that the Nifty will face resistance at 4899 levels and above that the Nifty can touch 4943. Close above that will decide the further movement of the markets. Nifty broke all the resistance levels and closed at 4958 on Wednesday. But for the past 2 days Nifty is trading in a very narrow range. On Friday the markets were trading higher. Thursday the day when the Nifty again cross the 5000 levels, but was unsuccessful to close above the same even for a day. Markets almost slipped to the negative zone. But the Bulls were in no mood to leave the markets. In the past 2 days the markets dipped to trade in the negative zone but closed marginally at in the green. Nifty for the week closed at 4976. Sensex closed at 16741.

Technically speaking the Nifty has made a very similar pattern as Spinning top as per the Candlestick pattern. At the 5000 levels the Bulls are trying very hard to the close above the 5000 mark. Last week Nifty closed above the 61.8% retracement levels. But Nifty will resistance the 5013-5019. Close above the same, nifty will face resistance at 5070 levels. Markets have entered the over bought zone. We might see some correction in the coming weeks. Indian markets are indecisive so are the Global markets. The Bad news in the Chinese markets has still not faded out. My advice is don’t get too euphoric. Avoid taking too much position in the market.

==>> It's 5000 now

Finally the Nifty hit the 5000 mark. But closed below at 4948.60 down by just 9 points. Markets in the opening session showed strength, but lost it after the mid session. Sensex which was trading higher at almost 130-140 points slipped down to the negative territory. Reliance Ind share price was in constant pressure since morning, even after the block deal in the counter. Tata Steel which was trading higher, too slipped in the red.
As mentioned in my earlier blog that the Nifty will face resistance at 4969 levels and the close above the same will mark a new high for the 2009. Nifty next resistance levels were also mentioned. 4987- 5013 levels. Today Nifty made a new high for current year 2009, at 5003 levels, but could manage the continue its winning streak further. Nifty closed marginally down by 9 points at 4948.60. On Tuesday, Nifty had given a breakout above the trendline. Yesterday the rally continued, but today the markets opened up strong but slipped into red. Nifty will find big resistance at 4991-5015 levels.

Markes continued their winning streak with gud volumes. Nifty made its new 2009 and closed above its 52 week high. As menioned in my last blog that Nifty has resistance at 4969 levels. Niftyclosed at 4962 after making a high of 4966 levels. Close above the same will take the Nifty to 4987-5013 levels. Markets will witness some selling pressure at the higher levels.

==>> Nifty closed at its 52 week high

Finally the Nifty has hit the 52- week high levels. As mentioned earlier also that the Nifty is facing stiff resistance the trendline. In the last week, Nifty for 4 out of 5 trading days, closed almost at the trendline and the volumes were also not impressive. But finally the Nifty has crossed the above trendline (marked in the chart) and closed above that too with good volumes. Yesterday also the markets closed marginally below the opening levels, but the bulls did not loose the hopes and once again started the day with a positive note.

Markets opened up strong and continued its northward journey helping Nifty to close at its 52-Week high levels. But Nifty continued to face resistance at 4900 levels and closed at 4892 after making a high of 4899.45 levels again. Nifty was up 83 points or 1.74%. Sensex closed at 16454 up 240 points or 1.48%. Mid cap & Small Cap index was too almost 1.5%. PSU Banks were the target for today. Mid cap continue to flare up. Rally in the Auto, Bank, Reality and Metals helped the markets to close higher.

Turnover for the markets were at around Rs90000Cr. It was pretty good as compared to the other days.
In the last 5 days Nifty took support of the 61.8% retracement levels. As mentioned earlier also that the Nifty if crosses above 4836 levels, then it will make a room till 4899 levels. Nifty has stiff resistance at the 4899 levels, but as soon as this is crossed then the Nifty will jump to 4917-4969-4982 levels. The MACD is also trying to give a buy signal. RSI have turned upside. Tomorrow the markets should open up strong. 5000 in the Nifty could be seen in this week. But stay cautious and trade.

Nifty for the last week closed at 4680. On Monday Nifty chart had showed a breakout pattern above the Triangle pattern. Nifty for the first time since May 2008 closed above 4748 levels. Nifty closed at 4782 levels. In the last 4 months, Nifty was trading in an Island pattern between 4375-748 levels, but could not sustain the selling pressure. But finally this was made possible and Nifty closed at its 15 months high. But Nifty faced resistance at the trendline no.1. Nifty for the rest of the week continued to face resistance at the trendline. On Thursday, Nifty made an intraday high of 4889.05, but close down with marginal gain of just 5 points. Sensex which was trading higher almost 250 points, felt the heat and tanked to the negative territory levels. Prior to the fall on Thursday this writer had informed that the markets will witness some profit booking, keep light and the markets are likely to fall. (www.technicalsvishaldangaich.blogspot.com) On Friday again the markets were trading like a headless animal. Nifty gained just 16 points.

On Friday, Nifty closed marginally above the trendline. Volumes were pretty good in the current week as compared to the last week. Markets are finding it really hard to stabilize at the higher levels. Traders are advised to trade with strict SL. Nifty close 4836 will make further room upside till 4899 levels. Nifty will continue to have good support at 4746 levels. Nifty have closed above the 61.8% retracement levels.

Indian Markets are trading above the major resistance levels, but finding it difficult to stay afloat. Nifty in the current week have given breakout pattern above the 4740 levels, and currently trading above 4800 levels. But in the past 3 days Nifty is finding it very difficult to stay above the 4846 levels, as mentioned earlier also the Nifty has resistance level at the same. In the last 3 days it did made an intraday high above the same, but could not close above the same. In the last blog I had mentioned that the close above the same will take the Nifty upto 4889-4925 levels. Today Nifty made an intraday high of 4889 levels as mentioned. For the past 3 days Nifty is finding it difficult to close above the trendline. It is closing almost at the trendline. Breakout above the same could take the Nifty straight to 4925-4950++ levels.
Till will continue to have good support at 4740 levels. Yesterday the Bulls did try to make the Nifty close above 4846 levels, but the panic selling or profit booking drag down the markets again after the mid session. I am glad to inform that this writer had informed the clients to b0ok profits in their trades when the Sensex was trading higher around 230 points, and as we all can see that the Sensex fell down to the negative territory, but closed marginally higher.
I would still think that the traders should keep their positions light in the market. I don’t think so that the markets will fall like it use to fall in the near past, but it is better no to make loss in the trades. There are more chances that the markets will continue to rally. but the SL has to be kept in mind.

The Nifty for the first time since May 2008 closed above 4800 after hitting an intraday high of 4842.20. Strong rally and short covering in the frontline stocks helped the markets surged 1.5%. A spectacular rally in the RIL and SBI helped the markets to surge. Global markets too were very positive. More of the frontline stocks outperformed the markets. After running a quite in the past, Midcap stocks witnesses profit booking today.

Nifty after making an intraday high of 4842 before settling at 4805 levels. Sensex made a intraday high & low of 16232.16 & 16030.56 before closing at 16123.67. As mentioned in my last blog that the markets will continue to rally and the Nifty can go upto 4836 levels. Nifty faced resistance at the trendline. And from the same levels, nifty corrected nearly 40 points, but closed above nearly 22 points. Yesterday Nifty had given a breakout from the Triangle pattern. But continued to face resistance at the parallel trendline.( marked with Yellow) Nifty have closed marginally below the trendline. In the closing hours Nifty fell down sharply from 4846 levels. Breakout above the trendline is expected with volumes. Volumes in the markets were pretty good, but Nifty could not close above the same. Close above the trendline will take the Nifty to 4889 – 4925 levels. Nifty will have good support at 4748 levels.

==>> Nifty brokeout above the Island pattern

For the first time since May 2008, Nifty closed at 4782 levels. In the last few months, Nifty was trading in an Island pattern between 4375- 4748 levels. Nifty in the last 4 months, tried several times to close above 4748 levels, but could sustain the selling pressure. But finally this time the Bulls have made it possible. Indices closed at 15 month high. Sensex touched a new high of 16035. Before closing at 16016 up 327 points or 2.09%. Nifty made an intraday high of 4790 before closing at 4782.90 levels up 102 points or 2.19%.
In the early hours Indices opened up with marginal gains, but positive global cues, buying in frontline stocks and short covering, helped indices rally nearly 2%.
As mentioned in my last blog also, that the Upside move in the markets are more in sight, rather downside. As stated that the Nifty in last few months was trading in an Island pattern. And the breakout pattern through the triangle pattern, will take the Nifty to 4803-4836 levels. RSI has also turned positive, and MACD is also trying to turn +ve. Mid cap stocks were doing pretty well. Bears will continue to cover their shorts for sometime. Nifty will have resistance at the 61.8% retracement level.

==>> Nifty bounces back

On the Friday 28th Aug 2009, Nifty closed at 4747. Nifty was all set to give a breakout pattern in the daily chart. But the negative trend in the Global markets, lead the fall in the Indian markets. On Monday, markets opened red and continued to fall to close at 4662. On Tuesday markets opened up strong, Indices continued to surge. Nifty surged to make a high of 4735.90 levels, but unexpected selling in the markets, lead the Indices fall sharply. Nifty fell down to make a low of 4600.65 but closed at 4625. For the next two days Nifty closed down in red. Nifty took support at 4578 levels as mentioned in my blog also (www.technicalsvishaldangaich@blogspot.com). The last day rally in the markets snapped the 4 days losses. Nifty took support at the trendline (marked in the chart) and pulled back sharply on the last day of the week. Nifty in the coming week might give a breakout patter either side. Nifty at the lower levels has support at 4578-4610 levels. In the last 3 days nifty took support at the 20DMA and bounced back. In the chart we may see that Nifty might give breakout pattern through the Triangle pattern. Either side breakout will be too fast and that too with volumes.

In the last 3 months we can witness that the Nifty is trading in the Island pattern. Nifty in the current week faced resistance at 4746 levels and again corrected to make a low of 4576 levels. There were reports that the Nifty will correct more and may fall down to 4200 levels. Nifty will face resistance at 4746 levels. And will continue to have support at 4610-4578 levels. Next week we might see some pull back and the breakout pattern may be witnessed in the next week. But the levels should be kept in the mind. Close above 4746 levels Nifty may touch 4803-4836-4899 levels.

Yesterday, we saw markets falling like a dead pin. Bulls had a bad time yesterday. Nifty faced resistance at 4746 levels. Bulls tried to take Nifty above 4746 levels, but could not succeed. Markets saw an unexpected sell off in the markets. Yesterday markets which opened up strong. Nifty was all set to cross 4750 levels, but sell off lead the Index close below at 4625 levels
Nifty once again faced resistance at the trendline. Indices remained in the positive zone for most of the day. Shanghai markets fell down by almost 7 %. This triggered the selling in the Indian markets. Nifty which made a high of 4735.90 slipped down to 4600 levels, within minutes of the trades. Nifty on Monday closed below at 4625 levels. In the last 2 days Indian markets faced resistance at their trendline. Fear of some major correction in the Chinese markets too leads the bearish trend in the Indian markets.

Today Nifty closed at 4607.75, made a intraday high and low of 4650 & 4576 respectively. Markets remained lack luster for most of the day. Indices kept on changing their positions from –ve to +ve zone. Nifty has a good support at 4578 levels. Close below 4600 levels may take Nifty to 4510 levels. On Monday, a small inverted hammer pattern had been created in the Nifty chart. And Today A Doji pattern has been made, this indicates that we might some pull back tomorrow. The corrections in the Indian markets are mainly due to global cues. As soon as the Global markets review our markets will too surge. The close on Friday gave a strong indication that the markets will continue its northward journey, But on Monday & Tuesday, Shanghai markets corrected heavily so our markets too.
BUY Relcapital with SL of 875 tgt 1000++