#107 Nifty Update: Channel Move

On my last Post i mentioned “Dirty picture” for NIFTY but it was not much a dirt for the investors. My last post was on 17th Dec and than we saw NIFTY bottoming around 2% from there and bounced backed. Now as you can notice NIFTY has been trading range bound and in a secondary upside channel wave. I was waiting for channel confirmation to have new post and i got on Friday the 13th. Can u notice that last three candles have been a “DOJI”, expressing a tough fight between bears and bulls better than India vs Australia tour. We could notice than both upper and lower arm of the channel has been tested twice which is a great confirmation. The last upside has left two gaps unfilled at the bottom which is a second sign that markets may see some correction back to 4650. RSI and MACD indicators are still supporting a upside while stochastic is suggesting some correction before more upside. Stochastic has been in overbought zone. Earning season has start with INFY posting gud numbers but guidance was depressing for investors. On the other hand from tomorrow Foreign investors will be allowed directly to invest in our markets which will boost money flow in our market. But on friday after markets hour we received that moody has downgraded credit rating of many EU countries by a notch which signifies that yet Europe crisis is unresolved. On 24th Jan we have bank policy review which is expected ti bring CRR cut by most of the bank. dimag mein khichdi baan gayi??? Same is with all investors. All are confused what will be the next. So i feel market yet be range bound and move in this channel unless the channel breaks out either way. Channel range is 4600-4900. For next week be on short side with sl of 4900.

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