Monday, June 6, 2011

Nifty in minor corrective mode!

Nifty Daily:

Nifty 10 mins

Nifty made a high of 5604.75 and turned lower to close the week at 5525. We have been talking about resistance level of 5605 for more than 2 weeks now and we can see the power of this level. Nifty is showing sincere respect for this level and failed to move above it. After touching that level prices immediately turned and started moving down impulsively. We are now correcting in the form of an irregular flat correction as shown and are now in wave C of this flat correction. We do not see this minor downward pull back over as yet and expect atleast consolidation of drift lower now atleast till 5490 – 5500 levels. Prices should retrace till 38.2% of the move up from 5330 as shown. Also time wise we expect atleast one more day of correction pending before we can turn up again.

Any move up above 5605 in lesser time then it took for the move down from 5604, will indicate the previous uptrend has resumed but till that happens we should wait for current minor correction to get over and use any pull back as buying opportunity.

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