Mini Uptrend Formation in Nifty
12 June 2008
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Nifty Spot Price : 4539
Todays closing and markets hefty recovery from days low of 4392 lead to an opening
of a mini uptrend, but weak channel formation as shown( see red channel).
Click the Chart to get Enlarged
This Channel suggests that probably we are at the bottom if we are not to face
any hard sentiments in the market. As the bandwith of the channel is less ( <200)
and so do the weaker trend. Any hard market sentiment may likeky to break this
mini trend formation.
Factors Possibly that can Break this trend are :
1) Tommorow's Inflation Figures
2) If Oil surges to a news peak
3) Bad IIP no's released today
We had closed once again nearly at the resistance region 4540. Hardly a broke out above 4550
on closing basis could lead to a short term uptrend. But Our ADX indicator is contantly moving up Signifies the strenth of the weak trend may break up at any time and can lead into negative trend once again. So Dont be hurry in a hurry to long in any of the scripts as market is still hungry to eat your proits. As todays positive closing is due to technical bounce back,market volatility and on the note of positive opening from European markets and more whatever you call.
In summary US markets closing may be positive as the US futures are right now trading in dark
green because of Great Expectations from Retail Sales nos's. And Crude is trading nearly at 134$/Barrel. Any Shaky substance can lead to the broke of the weak trend and it would lead to
a huge dark space where Bears are ready to catch investors tightly
Regards,
Rajandran R
Author – MarketCalls
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