Indices
Friday, December 27, 2011
INDICES: INDICES: (Medium term Reversal)
It made 4/5 attempt to break neckline 0f bearish H&S pattern in this overall correction started from 21108.64 in sensex & 6335.90 in nifty (High of 05/11/2010 in both). It has broken it & traded below it, made a low of 15135.86 in sensex & 4544.20 in nifty on 20/12/2011.
But it failed to achieve medium term targets levels as mentioned earlier (i.e-4380 levels in nifty & 14700 levels in sensex) & came above neckline levels. It has taken support around 4500 levels on nifty & 15000 levels on sensex.
It also closed above medium term reversal levels of 5100 levels on nifty & 17000 levels on sensex & 5880 levels in BSE midcap.
It looks like medium term correction over started from 05/11/2010 in broader market.
Further more, market is also trading in channels pattern in broadly as per chart attached in this whole 12 months correction started from 21108.64 levels. It has taken support at lower end of channel in recent lows, now we can expect further rally towards upper end of channel initially for immediate targets levels mentioned below. Able to break channel upwards will give us further indication of higher levels targets for medium term.
One should expect market to rally towards higher levels targets in medium term. Initially one can expect 5400 levels in nifty & 17900 levels in nifty.
Sustain above it will lead to further upside till 5700 levels on nifty & 19100 levels on sensex in coming months.
Investor should buy at current levels or in any kind of correction
For long term investment.
It looks like strong base / support around 4500 levels on nifty & 15000 levels on sensex.
One should buy at every decline till market is trading above these levels for medium term to long term view.
Trader should keep reversal levels SL-16500 in sensex & 4960 in nifty for short term & Trail it with revise medium term reversal levels mentioned in market outlook column.