Nifty once again closed below 4600 levels

On Monday markets surged and closed higher. Nifty chart had pattern made on Monday closed above the trendline and had given the upside breakout pattern. Nifty closed at 4711 after making a high of 4723 for the first time since June 2008. On Tuesday Nifty closed down marginally after making a high & low of 4731 & 4642 levels. The next day too markets remained volatile. Nifty closed marginally up at 4694. Finally that proved that the battle is on in between the Bulls and the Bears. I had mentioned in my blog (www.technicalsvishaldangaich.blogspot.com) that the movement on Thursday will decide the trend in which the markets should head towards and traders should keep their positions light. Thursday markets opened up strong, but heavy winding up in the frontline stocks stopped the party. Until Thursday the markets were in the hands of the Bulls. But on Thursday Nifty closed below its trendline. RSI chart too was facing resistance. On Friday Nifty took support at the trendline. For the week Nifty made a high of 4731 and low of 4464. Nifty has good support at 4450-4370 levels. According to me the slide should stop in the next week as there is no other bad news other than the Monsoon deficit. Markets are still not in the hands of the Bears. Nifty will find resistance at 4600 levels. If the markets closes below 4450 for more than days then we might see 4200 in the future.