Indian maekets closed positive on 21-12-2010 but I did not posted bullish views but projected bearish views in following words yesterday:-
1- intraday patterns are not suggesting consolidations but distribution signals seen in last 2 sessions
2- until crucial resistance(6015) will not be broken out and Nifty will not sustain above it till then rally will not get confirmation and yesterday upmove will be considered on the back of strong global cues only.
I told for distribution on 21-12-2010 and Nifty dipped below its lowest within half hour forceful down move yesterday. Bearish views were given amid bullish global sentiments because intraday charts were suggesting weakness.
Last 3 days intraday charts analysis:-
Half Hour Down Move of 22-12-2010 nullified following intraday up moves:-
1- 4 hours move of 22-12-2010 nullified
2- Whole day move of 21-12-2010 nullified
3- 2 hours higher band move of 20-12-2010 nullified
As intraday selling therefore mentioned up moves neutralised within half hour down moves.
1- 3 days intraday chart:-
Nifty traded with intraday genuine selling patterns within 6004-6023 yesterday and previous session intraday selling has also been shown above. Strong resistance was already at 6015 and it has strenghtened yesterday after genuine selling surrounding it therefore 10th Dec started upmove terminated and Indian markets will be understood range bound within 5690-6069. Double top and double bottom at the both sides of this range and fresh consolidation/distribution in the coming weeks will decide the side of break out. Let market prepare then break out side will be decied accordingly.
Following supports testing expected now:-
1- 5855-5890
2- 5785-5820
3- 5745-5775
Yesterday begun weakness will be seen today and in the coming sessions.