11 June '12 NIFTY:Crossover of 200 dma @ 5065 is generating first target @ 5125 and then 5176. Support stand @ 5002>4990. Rise will continue.
You must
read previous articles and watch above chart carefully to understand this
article completely.
It was
quoted on Friday, “this market may give you a feeling for weakness and fall but
those levels may trap bears again”. It has done the same, broken 5002 and hit
4994. Then we have seen an extremely sharp reversal. Finally we have seen a
close above 200 days moving average.
Now even
global cues are turning strong. It was quoted earlier that this rally/recovery
would be supported by news flow too. Those news flows are coming from European market.
It seems that we are going to see some good gap up. It may be as big as 1%.
Nifty is
expected to hit near 5125 now. If it sustain above 5125 then we can expect a
test of 5176 levels.
5176 =
1.618% retrenchment from 4770.35 (Against the fall from 5020 to 4770)
It is not going to be easy to make a
cross above 5176 in one go. We may expect pause on or before 5176 levels. Only
time can answer this question. As of now market seems to continue with rise. I will
decide about the possibility of ‘fall from resistance’ during trading hours
only. There is nothing on the chart which can suggest for dip or profit taking.
My view
is cautiously long side. I may trail my long position with stop loss at 5090
after a gap up opening.
Are the
fundamentals really supporting this rally/recovery?
I have no
doubt that fundamentals are not supporting this rally/recovery. Hence, we are
forced to see a fall from higher levels. This rise is just technical in nature
with some good news flow.
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
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Thanks
& Regards,
Praveen
Kumar
Mail id –
Praveen@viecapital.com
Mobile
number – 09893369889
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