Wednesday, August 24, 2011

Nifty 15 days cycle turning up!

Nifty 15 days cycle:
 















Nifty 15 days cycle is still working very well and indicates further upside plausible atleast this week.

Nifty rallied in yesterday’s session to relieve the extremely oversold condition. We now expect the short term trend to continue up atleast till 5100 levels. As we have shown the important resistance blue line, a break above this line will be crucial for any further move up. Failure of prices to penetrate this line today or latest by tomorrow might result into move down back below previous lows.
We have shown the path of Nifty to be in the form of a triangle. We are not expecting a steep move up over medium term but the current rally to extend maximum till 5200 levels. After that we should have consolidation phase to form a base for future direction.
In short, our bias is positive over short term as long as 4850 is not taken out on downside. The current move can extent till 5100 – 5200 levels and nature of rally over next 2 days will provide important information.

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