Follwing fundamental and Technical points are showing weakness in Indian markets:-
1- Long term trend is down,Intermediate term and short term trends are sideways.
2- Libya issue not resolved and Crude price hike risk is still alive.
3- Nifty retraced 2 times from 200 Day EMA(near 5600)
4- Nifty could not cross immediate resistance range(5540-5590) slipped from higher levels yesterday.
Following technical developments are suggesting base formation and begining of rally:-
1- Support near strong support of 5210.
2- Falling channel break out.
3- Support at Falling Channel on 24-02-2011.
4- Higher bottom support at 5432 on 24-02-2011.
5- Up move in rising trend line.
1- EOD chart showing 5 Technical Developments suggesting Rally:-
1- All trends turing up.
2- Begining of rally after 2 months consolidations.
3- Confirmation of corretcion completion which started on diwali-2010.
4- Completion of 4th wave correction.
5- 5th wave begining confirmation after completion of 3 wave correction.
2- 5 Waves Formations in Nifty EOD chart:-
Long tail Doji candle fomation yesterday and it is suggesting equal force of Bulls and Bears but intraday charts of last 3 days are suggetsing consolidations and yesterday slipping from higher levels is a part of consolidation process only. Nest resistance between 5540-5580 but Nifty will consolidate within this range and will cross in the coming sessions.
Libya problems are unresolved but Indian markets showed consolidations and base formations despite disturbance there and crude price hike risk also therefore:-
"Sustained rally above 5600 will be seen in the coming sessions despite whatsoever negative happens in Libya or any where else."
First support range is 5500-5530 and expected that nifty will not dip below it and finally sustain above 5530 and close positive today.