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 ?
Overall aggressive traders keep stoploss at 5815 spot price level and be long side. There are cluster of resistance on chart above this zone. For sustaining and energetic up move nifty must jump the all resistance with gap up action.
Nifty is continue making 52 week high on chart. As per slow stochastic and RSI indicator nifty daily chart is in overbought zone. Nifty 6000 call 239,250 fresh contracts in open interest and it is standing with highest no of open interest in call side. The volume in 6000 call was impulsive today. There is no change in put call ratio today and it is at 1.07. When I consider chart and data it appears that nifty is becoming tired but impulsive rise in price confuse me and compel me to think that price in 5th wave may extend.
Smart players should not take fresh entry in current situation and always consider to exit from long term investment. Remember every day will be crucial day further ahead. Don't be aggressive in long side.
