Sunday, March 21, 2010

Update : Rising Wedge in Nifty

Nothing new as market has been trading in narrow range, Market were already in extremely overbought conditions but were not correcting so now the RBI action of increasing repo rate and reverse repo rate would work as a trigger for overdue correction to come. Breaking of lower trend line(which as of now stands at 5220) with good volumes would take nifty to sub 4900 levels but 5100 area could provide strong support.

7 comments:

  1. Dear Renu,
    Last 40 minute trading saw Nifty break 5220 convincingly with volumes and it closed at 4999 without averaging.
    So can we expect the above scenario to play out know?
    Thanks

    ReplyDelete
  2. Hi manoj,

    Yes i am expecting the above scenario to play out with retesting of lower trendline once ,in case market start trading sideways one should get out of short position as sideways move indicate towards high possibility of pattern faliure.

    ReplyDelete
  3. renuji and manoji,

    //Last 40 minute trading saw Nifty break 5220 convincingly with volumes and it closed at 4999 without averaging.//

    cldn't understand this part...cld u educate me on this..bec we closed at 5205 in spot and 5213 in futures...wherefrom this 4999 come?

    sri

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  4. Hi sri,

    its just tying mistake by 4999 manoj meant 5199 without averaging at 3:30 pm.

    ReplyDelete
  5. Renuji,

    thanks. Thought manoji must be using some other analysis..

    thanks once again
    sri

    ReplyDelete
  6. Sorry for the typo error.
    Thanks

    ReplyDelete