2011 begun with positive note but immdiately after that non stop series of adverse news flow started and resultant Indian markets are crashed from higher levels. Long term trend is confirm down and intermediate term and short term trends are struggeling at 5500 in side ways moves. All the global markets tumblled yesterday after most negative development in Libya and this process is continued also and the Asian markets are trading in deep Red today morning.
Nifty traded whole day yesterday within 5470-5500 with support at lower levels but today opening and firstly trading below yesterday lows can not be ruled out because all the Asian markets are showing complete weaknes. Global pressure is high and markets will be decided according to sustainability beyond ceratin levels. Trend deciding levels are as follows:-
1- Range bound within 5400-5600 and this range break out will be confirmation of next moves. technicals are suggesting upward break out because last 4 sessions consolidation formations but negative news flow is dragging down therefore mentioned range break out will give next immediate move confirmations.
2- Long 6term trend will be up above 5600 therefore be bullish after sustaining above 5600.
3- Sharp down moves will be seen below 5400.
Firstly watch 5400-5600 break out and sustaining beyond because that will give confirmation to Indian markets reaction on all global negative developments.