I have written the two possibilities in my previous post and one of my technical friend wrote me that why didn't you write clear cut direction. In other words Why i have not written about the particular single direction. You will automatically find the answer below that what would have been the reason behind to write this. I have posted lots of chart below to understand clear cut picture. Nifty was waiting for clear clue of FDI. As we know that Govt had successfully passed the FDI in Retail both in Lokh sabha and Rajya Sabha, Govt now is looking to pass the Insurance and Pension bill in Parliament. Also there is a huge expectation that RBI may cut the Interest rate in coming week, which may inject the Positive sentiment in the market. But I think it may give a greed to bears before going up. Below 5880 it will slip towards 5815 to 5765. But If nifty has to go straight upside then it must be cross a LAXAMAN REKHA which is at 5950. If it cross and close above this level expect a straight rally heading to 6030--6150. But 5880 must hold. So assume this level as a reversal level for very short term.
On daily chart just see the hight of lower blue colored rectangle. it is almost 600 points so there is high probablities remain on the chart that price may touch the upper line of upper rectangle. On hourly chart as we are seeing that nifty is falling towards its lower trendline support which is around 5815. There for falling till 5815 is also on card. I highly expect that nifty will slip lower first and then it may go upside. For lower target nifty must break 5880 level. On daily and weekly chart RSI is in overbought zone so traders must be alert on up side. As we know that we are trading in fifth wave and nifty has allready retraced 61.8% of 2011 fall, so we need alertness every time with our overnight position.
Nifty fell almost 100 points from its high in morning session and recovered sharply and closed above its previous close. Short sellers tried to pull the Index down but bulls shows its energy in latter half. In my Intraday session report I suggested that wave may expand higher side. short players must be trapped today. I have been talking about 5950 since so many days. It touched 5942 today and closed at 5930 level. How ever wave 1 and wave 3 has spent 5 weeks so I expect that wave 5 should spend 3 weeks. So wave 5 can be extended towards 6200 to touch the upper trend line, which is shown in below charts. Prices Rise was very impulsive in nature but Fii figure in Fno segment is not impulsive and this activity compel me to think that tomorrow is Friday. Will tomorrow be top of Indian market or it will go directly towards 6200. Tomorrow Friday will really be FRY DAY ?
