Pre-Open Market Outlook-1(15-07-2010)
Some profit booking between 5415-5440 yesterday therefore it is first minor resistance range. First support range is 5320-5380 therefore next broader trading range will be 5320-5440. Indian markets slipped firstly after double digit inflation and secondly after getting continuous weakening cues from European markets Yesterday but down move was not a result of genuine selling therefore until follow up selling does not develop till then further fall will not be expected.
Nifty will trade within 5320-5440 in the coming sessions and will prepare for next moves. 3rd wave is on and all trends are up as well as on going up move started after good consolidation at 5230 therefore complete selling patterns minimum on EOD charts required for begining of any down move and until that will not happened till then any down trend will not be imagined.
It has been the character of 3rd wave that 4 times intermediate term correction started after new top formation. Now it is million $ question is that this time intermediate term correction will start or not? My answer is no because:-
Pre-Open Market Outlook-2(15-07-2010)
1- Intermediate term correction started previously after complete distribution patterns formations and this time no such pattern yet.
2- Latest Upmove started after good consolidation and rounding bottom formations at 5230 as well as completion of short term correction. Good upmove is left yet after these bullish formations.
3- Flag formations few days back and It is the character of Bullish Flag that it is followed by a steep or nearly vertical rise.
4- MACD line intersected upward average line 2/3 days back in both Daily and Weekly MACD therefore these two have given more up moves confirmations.
5- Daily ROC and RSI have not entered into over bought zone therefore positive both indicators signalling more upmoves possibilities..
Indian markets are technically poised for upmove despite yesterday profit booking. If any devastating global cue does not emerge then fresh up move will start from coming sessions after some more consolidations.
After flat to positive opening expected that Nifty will not dip below 5320 and fresh up moves will start within next couple of sessions to form new highs of March 2009 rally.
ॐ ह्रीं श्रीं लक्ष्मीभयो नमः॥
