After making a low near 5477, Nifty made a new high near 6229, and it appears now that it has made a 'higher low' near 5566. Nifty as well Sensex have respected the rising uptrend line from June 2012, and that line remains crucial for the long term. In the last 2 days, Nifty has rallied very fast by almost 225 points from the low on Thursday.
Short term charts have given a strong reversal, and although my long term view (see previous post below), is of a sideways market between 4000-4200 and 6000-6200 for another couple of years, the short term trend remains UP, and it has become a 'buy-on-dip' market.
The hourly charts are now overbought, and there might be some cooling off in the next couple of days to perhaps 5770 and maybe even 5730. As long as Nifty does not break 5675 (spot) in the next few days, one needs to stay LONG, for much higher targets.
The resistances are 5860-65, and then 5935-70. Die-hard (perma) Bears can use these levels to try shorts near these levels (SL being a close above those levels).
If Nifty closes above 5975, I see another huge resistance near 6010 - 6075.
Only on a close above 6090, can we look for new highs to maybe even 6250, but I will be careful with longs above 6000.
Nifty weekly chart :
Sensex weekly chart (it is always better to also keep an on Sensex levels mentioned below) :)
Short term charts have given a strong reversal, and although my long term view (see previous post below), is of a sideways market between 4000-4200 and 6000-6200 for another couple of years, the short term trend remains UP, and it has become a 'buy-on-dip' market.
The hourly charts are now overbought, and there might be some cooling off in the next couple of days to perhaps 5770 and maybe even 5730. As long as Nifty does not break 5675 (spot) in the next few days, one needs to stay LONG, for much higher targets.
The resistances are 5860-65, and then 5935-70. Die-hard (perma) Bears can use these levels to try shorts near these levels (SL being a close above those levels).
If Nifty closes above 5975, I see another huge resistance near 6010 - 6075.
Only on a close above 6090, can we look for new highs to maybe even 6250, but I will be careful with longs above 6000.
Nifty weekly chart :
Sensex weekly chart (it is always better to also keep an on Sensex levels mentioned below) :)
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