Wednesday, September 7, 2011

Nifty bucking global down trend! Looks positive!

Nifty Daily chart:

Nifty 20 mins

Nifty is failing to sustain the down move and smartly recovered during later part of the day. We are looking at the current up move as an A-B-C of an X wave and we have started wave C up. Wave b looks complete at yesterday’s low but we would still wait and watch today’s action for further positive confirmation. The next resistance level lies at 5200 which is the open gap on the prior down move.
As long as 4977 level is maintained we are looking prices to reach atleast 5200 and possibly higher to close the big gap between 5200 and 5350.
Nifty is still not in sync with the global trend as of now and severe selloff across European indices over past few days failed to impact Indian markets. We maintain our stand of “cautiously positive” on Nifty as global markets are still exhibiting weak structure.

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