Nifty has done what has been expected for last one week onwards. Opened on a stong note, then became weak and in the end fell like nine pins to close at the lowest point of the day, thus signifying that bears are becomming increasingly strong and further down sides are not ruled out. One of the noticing features of today movement is the long bearish candle associated with heavy volumes. Another noticing feature of todays movement is that nifty has broken through series of MA from 3 day to 15 day indicating the market might has turned down. It appears that 5150 is one level which nifty is finding it difficult to break and where ever it is going near it is reversing in a big way. So for the atleast short term 5150 is the major resistance which nifty has to creack other wise i have not doubt the the low of november would be again tested. It can be seen from the chart that trend line from the botton of november is broken with heavy volumes justifying the break of the trend line. It can be seen from the chart that the MACD is about to give a sell signal which would further strengthen the bulls. It nifty falls from there levels this the first time in last eight months the nifty would have formed a lowere top and it should be confirned by nifty breaking the november low. So longs better watch out.
M.Sri Mahidar
Trend is friend
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