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.
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