==>> 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.