Nifty closed the last session of this week with another indecisive play.Nifty posted a mild negative close at 5316 with minute loss of 10 odd points on the cards.Somehow we managed to close in green on the weekly charts.The overall breadth stood in the favor of the bears with 600 advances to 900 declines.It is evident from the weekly charts that bulls are making consistent efforts to inch up day by day.
With today's close markets have closed above the 61.8%retracement level on the weekly charts,making us to remain bullish for the next week also.I would also like to mention that the nifty is likely to face resistance of the down-sloping trend-line,which comes to around the 5400 levels .Looking the movement this whole week ,it is quite clear that the market is facing serious trouble moving up, but the bulls are not losing the momentum.In such case we are in serious need of some vital ingredient which the prevailing trend is lacking .
The policy reforms too are of low appetite unable to re energize the markets.If such story continues ,we fear the party will soon be over and we might get due for some technical correction.The weekly chart is also witnessing overbought condition abreast daily charts,also the MACD has just given a positive crossover.Taking a look at a larger view we cannot deny the fact that markets are making higher lows in synchronization with the MACD adding more evidence that the markets may head on to make a higher high validating the uptrend.
The next week may come up with some fireworks,is what we can hope.Markets closing below 5270 is likely to trigger some short term bearish concern ,till then we are bullish and maintain holding our longs.
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