Apologies for the long silence - but there wasn't much to report as I had already disclosed my long term bias in my last post and the markets took their sweet time in doing the target. The lower target for the range -5400 has been achieved - (well, almost - as the high was 5399.7), and Nifty took resistance at that level as well - Going forward - if we can manage two consecutive non-inside day closes above 5405 then I would consider that as a sign of major strength - but till then it is likely to be a tussle between bulls and bears. Important levels to look out for as support are 5170, 5065 and 4935.
It is possible that 5400 would turn out to be a major high which will become difficult to take out but its too soon to say anything definitive - my gut instinct is that we will test it again. There are long term patterns (very long term actually) active on both the upside and downside, Therefore in the larger picture - if we see 5700ish in Nifty then that should be an excellent selling area - and I'll write more about buying zone when we get closer to that area - as it's quite far from where we are at the moment.
Meanwhile, be careful - these are choppy markets and there is no dearth of bull traps and bear traps in such markets. All the best.
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