Market Trend

Dear All,

Pull Back Rally is On Cards


Long term trend decider 200-Day EMA is at 5648 and Nifty traded most of the time above it yesterday. Nifty got support 6 times at 5640 and closed at 5655 with Doji formation and intraday charts showing consolidation patterns within 5640-5690 yesterday.

Daily Indicators and Averages Analysis:-

1-Averages- Nifty is hovering around 200-Day EMA and its sustaining beyond will confirm Long term trend and that will be dcided within this week.

2-Bollinger Band- is at lower band after fast slipping from upper band. As at lower band therefore indicating high up moves possibilities.

3- MACD- Both lines are sliding in negative zone. MACD line is below Average line and gap between both lines increased. As big divergence between both lines therefore up moves possibilities are high to converge both lines accor/ding to its nature.


Indian markets out performed global markets and consolidated within 5640-5690 yesterday therefore until Nifty will not sustain below 5640 after fresh selling patterns till then any down move will not be considered. Detailed analysis has already been posted yesterday in weekly- 17-01-2011 to 21-01-2011 and indicators analysis has been posted today. As per my view Indian markets are well prepared for bounce back/V-Shaped recovery/Pull Back Rally and that will be seen from any day in this week.


Opening will depend on global cues but finally Green closing expected today.