Nifty opened on a weak note moved above 5000 and selling pressure took over and finally nifty broke thorough the 5000 level and towards the end it has made a low of 4925 and closed at 4952. it can be seen from the chart the the days on which the movement was positive was on lower volumes and the day on which it was -ve closing the volumes were high including today where in volumes were more that that of yesterday. This clearly indicating that bulls are not as strong as they appear to be and bears are slowely getting grip on the market. nifty has taken 10 days to fall from 5174 to 4536 and now it has compleated 7 days and we are at 4900 levels nifty has to move above the 5174 level in next 3 days other wise it would confirm that we might have made intermediate top at 5174.
From today onwars i would try to present, my observations as per point and figure charting.
As per three box principle nifty has give a reversal of trend as per daliy chart and nifty has to move above 5000 to negate this reversal. if nifty fails to move above 5000 tomorrow then we might see it drifting towards the low of 4536.
M.Sri Mahidar
Trend is friend
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