#105 Nifty Update: Inverted Head and Shoulder

NIFTY is back in mood so is Me in updating my blog. NIFTY has seen a downfall  towards 4650 after i last updated my blog. Same time last year we had seen a yearly high in 2010 can this time it be a yearly low in 2011???? I strongly believe yes it could be. But i may be even wrong thats y i keep a stop loss to my trades.  I had been constantly saying BUY -BUY on my twitter account (@NIFTYbykush) when the NIFTY made low 2 consecutive days at 4630 odd levels on 23 and 24 of last month. Short term investors would have got handsome returns. Oh common dont feel that you have missed the bus. U can still jump in on every dip as i feel now that 4900 will be the bottom support. We may see range bound movement until 9th Dec when brussels meeting is held on. But seeing the global sentiments and political steps in last one month, i strongly believe that some positive vibes are waiting further. All the global indices charts are currently in favor of bulls in short term which could be a signal of bottoming out. Banking sector and Metal sector will be the leading our markets rally. Why banking?? 1) Short covering 2) it is expected that CRR will be reduced which will improve liquidity in market to tap inflation and metal sector because it was the most beaten after banking sector in last downside. So you may take positions in selective stocks in such sectors for example HDFCBK, AXIS BANK and ICICI Bank while in metal sector TATA STEEL , STER and HINDALCO. Technically speaking on NIFTY daily some characteristics of “INVERTED and Head And Shoulder” has been witnessed which on breakout will give a tremendous rally. Volume are increasing on rallies while decreasing while the fall which is also a characteristic of inverted H&S. So i am bullish on markets but obvious keep a strict stop loss. you never know what could happen in the world markets.
Important Levels:- R-5124,5172,5252,5326,5400,5525

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