#134 Nifty Update: "Choona na choona na Ab main "Overbought" ho gayi

NIFTY singing a song to WARN! long traders. Picture on the chart of NIFTY is abt to get dirtier if we dont see close above 5448 tomorrow. As you can notice the chart, its the same thing as my last post on NIFTY bt only change is addition of 2 latest candles. As we can clearly see that it resisted today exactly at 5448 and thn bounced back to close below 5420 for 3rd consecutive day as mentioned in the chart. Bulls strength is getting weaker and weaker day by day as its nt able to clearly close in tht channel again. One more close below tht channel tomorrow and downside is confirmed. 5448 is strong resistance level tomorrow again as 1) channel boundry line 2) previous rally resistance and 3) 61.8% resistance of last downfall from 6330-4700 (approx). All the indicators are in overbought zone and they are warning as tht NIFTY MIGHT see a turnaround. technically we are sighting downside upto 5220-5240 which is 50% retrenchment of last rally 5032-5448 and also a unfilled gap over there. from PMI numbers of China, Germany and France were announced today and they had improved over previous whch was the sign of recovery in their economy. US unemployment claim is gonna announced soon which could effect the market opening at DOW today. Merkel and Hollande are gonna meet today to discuss abt the easing package for greece. Tomorrow and day after Greece FM gonna meet both Merkel and Hollande on respective days. So this weekend is gonna be eventful. Consumer confidence data for Europe will be announced around 8:00pm which may have lil impact on the markets. Domestically we are not sighting any improvements in politics as we saw 3rd consecutive adjournment at parla session. This is a shame for us as instead of solving issues our govt is running away from it. Monsoon have been pretty good while inflation has eased so thts a gud sign for our economy. Now coming back to stock markets, if the global data to be announced later today are way above expectation thn we may see some rally but if at par with expctation or below thn we may see some profit booking in markets. My strategy on #nifty:
Sell NIFTY CMP with Stop loss of 5460 (Closing basis) tgts 5385/5357/5330/5306/5385/5260/5240/5216

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