NIFTY - nadiya ke us paar

The Nifty kaBULL express has only Pit stops on the way.

It is amazing how the market follows Fibonacci levels.

Going back to pre-election days - May 2009 - there was an all important level 3820 which was the 38.2% retracement of the previous year's fall. Bulls had sensed that they might face a stiff resistance at 3820, and as I have been constantly saying, there is only one way to cross such levels --through a gap up, which is what happened on the historic day - 18th May. We have not seen 3820 ever since, and the lowest level thereafter was 3919.

In this case, at least there was a sound reason for such a huge gap up - stable government!!

Over to September 2009 - the next and MORE crucial 61.8% level - 4789 was approaching. Bears had mobilized their forces at 4730, keeping a cushion of 60 points and fought hard. Bulls realised this and they had no choice but to resort to the standard trick of overnight gap up, which is exactly what they did with a gap up from 4782 to above 4800 on 8th September.

Bears had not given up, and they still kept fighting hard but the amount of firepower available with bulls is amazingly clear now.

In the last 20 trading hours, the band 4784 to 4790 has been tested FIVE times intra day and every single time, bulls defended that band with all their might.

I do not think this level can break intra day now, and bears also would have realised that. The only escape for bears now is short covering, and the next level where they can think of attacking is 4922-25, which is the feeble 23.6% of the entire rise of Nifty from the beginning to the all time high of 6357.

We never saw 3820 again. Will 4789 too meet the same fate? Time will tell.........

Another chart attached shows the parallel channel on weekly basis.

No wonder, the extent of retacement by our stock market is equalled only by Brazil and other stock markets are lagging way behind.

Nifty rules the world...............

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