Following lines were clearly told in the weekly on 03-01-2011:-
"minor/very short term correction is possible in the begining of week"
Indin markets are trapped between strong supports(5940-6006) and strong resistances(6065-6180). On going rally started on 10-12-2010 from 5721 and correction of 459 points rally started from 6180. Fibonacci correction levels of this rally are as follows:-
38.2%- 6042
50.0%- 6000
61.8%- 9558
70.7%- 5926
76.4%- 5905
78.6%- 5897
88.6%- 5861
Correction is on and following levels will also be kept in mind:-
1- 5988-6006- Strong support because Good consolidation between this range on 28-01-2011 and after that 27 days range broken out next day. Until Nifty does not slip below 5988 till then nothing to worry for bulls.
2- 5940- Intermediate term trend will remain up above it.
Long term and Intermediate term trends are up and short term trend is down after Last 5 sessions short term correction which is part of on going rally as well as a part of this process also.
Next resistance ranges are as follows:-
1- 6065-6180
2- 6180-6195
3- 6250-6320
Market will prepare first between 6006-6065 for next moves and it is also possible that it may slip below 6006 in consolidation process but until Nifty does not sustain below 5988 till then any weakness will not be considered.
Indian markets slipped ysterday and closed in Red but intra day charts of Indices and many pivotal stocks are suggesting consolidation. Nifty intra day chart of yesterday is showing following 3 bullish patterns;-
1- Water Fall Pattern
2- 5 Waves completed Falling Wedge Patterns
3- 4 hours intra day consolidations between 6025-6055.
1 Day Intraday Chart of Yesterday showing above Patterns:-
As consolidation signals above 6025 yesterday therefore until Nifty is above it till then any down move will not be considered. Allthough Nifty may slip below 6025 and/or 6006 in consolidation process but sustaining below these crucial levels is must for confirmation of any down trend.
First trading range of today is 6006-6065 and Nifty will prepare within it for next moves. Expected that consolidation will remain continued today and Nifty will cross 6065 within next couple of session and Green closing will be seen today.