NIFTY: 15 May 2012: Broken below 4904 to hit 4874. Expect the test of 4850 and watch out for signals for bounce. If it fails then prepare for 4790.
What was happening yesterday at NSE was beyond my understanding. What kind of technical problem it was that experts fails to rectify for more than hour. In those kinds of hours, it is useless to talk about technical. This is the worse conditions for any financial market. It happens only in India
Back to technical, there is no sign of recovery at these levels. European cues are still weak and US
Nifty has broken 4904 and then 4880 also. Now: we should expect the test of next technical support in the zone of 4853-4850 levels.
- 4850- I must say that those might be the levels for another set of recovery. Suppose if it save 4850 today then you can hope for some recovery.
- 4850- If it breaks 4850 and trade below for few minutes then we need to prepare for 4790 zone.
It is better to keep analysis simple. When I am saying save of 4850 means, I am talking levels like 4856-4860 or something similar.
I was expecting bounce in past few days but none has sustained more than 24 hours. We must be close to a bounce which should sustain for 2-3 days.
It is not looking like to cross 5040 in any bounce but Nifty should come closer to 5000 levels. It is also true that we will see fall again from those levels also. One must note that correction is integral part of any trading direction. If we are falling in weakness then also we have see some correction.
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Praveen Kumar
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