==>> Can we breakout this time above 4650???

It had been a very volatile week for the traders, Asian markets mostly depended on the American markets. American govt banned short trades on some financial sector, that lead to great short covering in the US makets. On thursday Dow and Nasdaq closed up around 4-5%. On Friday S&P500 hit the upper circuit of 5%. This could have definately given some sign of relief to the traders who rushed to cover their shorts. On Friday Russian market zoomed up around 11-12% on back of Russian govt will pump $20bn to support the stock markets. Thanks to the US markets that led to some relief in the other global markets also.

In the last few blogs i have mentioned that the Indian markets should out perform the other global markets. On 15th Sep Nifty closed at 4072. US markets were terriebly down, Asian markets were also feeling the tremour of the US markets. Next day Nifty immediately opening plunged till 3919 down around 160 points, but in the close session both Nifty and Sensex recovered smartly and rallied up to close above the previous close. 4070 levels was the 61.8% retracement level from the low of 3790 made on 16th July and high of 4539 made on 24th July. On Tuesday and Wednesday Nifty faced the resistance on the same level. On Thrusday Nifty opened in the Negative zone made a low of 3799 and closed above at 4038 to make a "Hammer" pattern in the Daily chart. The volumes were also good in the last 2 days.

Expect some short covering in our markets also. This may lead to 4400 levels in Nifty. We may see some side ways movement also and some profit booking also. Nifty will again try to test the previous highs. FII's remained Net seller for the week. They sold nearly Rs. 4600 Crs worth of stocks in the last week. But the DII remained net buyers of stocks worth Rs. 1700 Crs.