07 June 2012 : NIFTY : Crossover of 5000 will generate target first @ 5040. If rise sustains then expect 5065 < 5082 too. We caught the falling knife on long trade @ 4770. Why cannot we think to do impossible?

You must read previous articles and watch above chart carefully to understand this article completely.

After catching long trade on NIFTY JUNE FUTURE @ 4770, I was not expecting that we will be @ 5000 so soon but yes, it was my mentioned target on higher side. It was informed to our paid subscribers.

I cannot be over confident on my long trade and I like to give proper value to the resistance of 5034 > 5040.

Look at three important points for today’s rise or resistance –

1. Now cross over of 5000 has generated further extended target at 5034 - 5040. If you remember even on 29^th May 2012, I have quoted about 5034 -5040 as a level which was not supposed to cross at that and I was right. I cannot be over confident on my long trade and I like to give proper value to the resistance of 5034 > 5040.
2. Suppose if we see a cross above 5040 then we can expect a move @ 5065 (which is 200 days moving average).
3. A further smooth rise can take us up to 5082. It is 61.80% retrenchment of falling C wave from 5279 to 4770.

In short, we have three levels to watch on rise starting from 5040 < 5065 < 5082. My view is cautiously long side.  Crossover of trend changing can give us a hint for 5176 which is 1.618% retrechment of fall against 5040 to 4770 (already marked in the above chart)

What is driving market right now?

First is, in India we have so many extremely (dead) optimistic kind of trader. Yes, people are expecting a CRR cut either by Friday or by 18^th June 2012.

Secondly, Expectation of rise in US market. A falling market can make Mr. Barak Obama’s president election campaign tougher. So, you can say that we are on verge on another politically influenced move in Stock Market.

Thirdly, it seems Dr. Manmohan Singh is waking up after seeing GDP @ 5.30%. At least, now he is talking something about economy.

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. Intraday posts are available on www.viecapital.com only.

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Thanks & Regards,

Praveen Kumar

Mail id – Praveen@viecapital.com

Mobile number – 09893369889