The Nifty has managed to make yet another top on 28 Oct 2011 at a level of 5360. This trend indicates that we are still in the long term bear market that started in last Diwali (Nov 2010).
Lets check the Nifty levels since last Nov -
5 Nov 10 - 6312
3 Jan 11 - 6157
13 Apr 11 - 5911
7 Jul 11 - 5728
25 Jul 11 - 5680
28 Oct 11 -5360
This classical falling trend line indicates a long term resistance zone for nifty. Now nifty must decisively trade above 5400 for any respectable upside. To me, the chances of this happening are remote in the near future.
Now I expect yet another round of correction in Nifty where the previous lows 4747 (26 Aug 11) and 4751 (5 Oct 11) shall soon be challenged and much lower levels are possible.
Lets check the Nifty levels since last Nov -
5 Nov 10 - 6312
3 Jan 11 - 6157
13 Apr 11 - 5911
7 Jul 11 - 5728
25 Jul 11 - 5680
28 Oct 11 -5360
This classical falling trend line indicates a long term resistance zone for nifty. Now nifty must decisively trade above 5400 for any respectable upside. To me, the chances of this happening are remote in the near future.
Now I expect yet another round of correction in Nifty where the previous lows 4747 (26 Aug 11) and 4751 (5 Oct 11) shall soon be challenged and much lower levels are possible.
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