NIFTY: 09 May 2012: Nifty has broken 4986. Is it preparing for 4880 to 4850? No recovery can sustain now.

I have already suggested to short Nifty again from higher levels but I was not expecting that it will fail to cross even 50% levels which were at 5133. It remains untested and slipped horribly. I have already expressed caution in my intraday update.

Charts have changed a lot with close below 5000 marks. Although it came due to uncertain geopolitical development but chart do not know the reason. It only knows what is happening.

It is a 13^th wave breakout at 13^th week after hitting a high at 5630. Now on daily chart we have sandwiched candle pattern.  

It is 13^th wave break down and it may not be easy to reverse trend sooner and with this much ease.

We have just few technical levels to watch now. One is at 4950 and then at 4930. Break of 4930 will end up near 4880. I am focusing mainly on 4880 levels. It is very clears from pattern that we are not going to see any remarkable recovery.

38.20% of rally from 4531 to 5630 ended at 4951. Seems we will touch those today. I strongly like to quote, “Whatever is happening in Europe will surely end up in a massive mess. This will give heavy pain to global stock market."


(Updating at 9:40am- Initial low for NIFTY is 4959.65, almost saving 4951 support. General theory suggest that we may see some intraday rebound. Will it come?)

I have repeated many times and repeating now also that banking stocks will have to bear majority of those upcoming pains. I cannot believe that we will have better second half. In my view, it might be something which we will remember for long time.

Depending on market condition we will release intraday updates too. Till that time, you can post your views also so that I can present better result for you.

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Praveen Kumar

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