Pre-Open Market Outlook(28-10-2010)
EOD charts are showing following bearish formations:-
1-ABC Correction is on and its minimum target at 5849.
2-Head and Shoulders formations indications.
3-Slipping of markets after 2/3 days narrow range moves
Next Supports are:-
1-5985-6030
2-5932-5985
Nifty traded about last 2 hours within 5985-6030 yesterday with intraday charts selling patterns in depressed sentiments. 5985-6030 is strong support and more selling requires in the coming sessions to break it. Very short term indicators are oversold and sentiment depressed therefore minor pull back rally possibility also can not be ruled out.
As good support therefore next trend decider is 5985-6030 and its breaking down will mean 5932 also not be saved. As pressure is clear at higher levels in Daily charts therefore deeper correction is also possible in breaking down situations.
Flat opening and firstly trading within 5985-6030 expected and Nifty will prepare within this range for next moves. Clear break out of this range is must for next big move confirmations. As more preperations are required for any side break out therefore coming sessions intraday charts formations will be next trend decider and final view will be formed accordingly.
(Lalit Kumar Dhingra)
ॐ ह्रीं श्रीं लक्ष्मीभयो नमः॥
