12 June12 Nifty: Already suggested a dip from 5125 for a move towards 5040. Break below 5040 will push lower towards 4989 (~4980) then 4948.

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

I have strongly mentioned the resistance of 5125 yesterday before market hours. Now it is easy to discuss about 5125. I am sure that our readers were amongst those few people who knew the importance of 5125 from yesterday morning before market hours.

I am keeping my yesterday’s study valid for today also. It was given the fall from 5125 has a good trading support at 5090. Break below 5090 would have a possibility of pushing the market lower towards 5040. Click on the link below to read those updated about 5040.

http://www.viecapital.com/?s=blog&m=permalink&x=11-june-2012-intraday-nifty--stocks-updates

Nifty almost hit 5040 in very last minutes of trades and turn critical.

Let us discuss about today. As I said earlier that I am retaining my yesterday’s view so I am adding fewer more possibility below 5040.

Take 5040 as threshold point.

5040 = 23.60% from 5124.40 (against the rise from 4770.35 to 5124.40)

If trades sustain below 5040 then we can expect next technical support at 4989 (~4880). Any further break below 4989 will push Nifty lower towards 4948 levels.

If market has to recover then it must and must save 4989*.

Even in case of recover will face stiff resistance in the zone starting from 5065 (200 DMA) to 5074 (Intraday retrenchment resistance from 4994 to 5125).

I have already said yesterday also that fundamentals are not supporting this rally. Now S&P came to threat for downgrading India. Well, where were these people sleeping when our GDP fell from 9% to 8%, then from 8% to 7%, then from 7% to 6%. Now when our GDP came at 5.30%, they sudden appear to downgrade. (They are acting very late, now what can they expect?).

Government of India has rejected this report saying that situation is in their control.

These people will never ever accept that situation is out of their control. They will repeat this comment again even if our GDP came as low as 3.50%. I must tell you that just 5-6 months back I have forecasted for GDP growth to come near to 5%.

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Thanks & Regards,

Praveen Kumar

Mail id – Praveen@viecapital.com

Mobile number – 09893369889