Nifty rallied 510 points in 7 sessions and crossed 39sessions range after 4 days consolidation below 5329. Very short term indicators moved in overbought tettoty therefore very short term correction became due and that is being seen for the last 4 sessions in range bound moves. It is the nature of bull markets that they tend to correct in range bound modes and it is being seen.
Next supports are as follows:-
1- 5600-5628
2- 5575-5596
3- 5496-5550
Correction is on and Fibonacci retracement levels are as follows:-
13.0%-5639
23.6%-5585
27.0%-5568
38.2%-5511
50.0%-5451
61.8%-5390
Resistances are as follows:-
1- 5775
2- 5850
3- 5944
Last 4 sessions range bound market between 5606-5672 and technical positions of these 4 days intraday charts have been explained in following topics:-
1- Nifty-Micro Analysis of Intra Day Chart For 06-07-2011
2- Trend confirmation Crucial Range 5600-5672
Conclusions
Weekly indicators are positive,below overbought zone and suggesting more upmoves in intermediate term but very short term indicators in daily charts are overbought therefore telling for minimum minor correction to cool down,that is continued in range bound moves for the last 3 sessions. It is an strong indication of strong rally after completion of on going correction.
Very short term correction is on between 5606-5672 after 510 points forceful rally and next bullish phase will again be seen after its completion. Sustaining beyond mentioned range will be confirmation of next moves,strong support(5575-5596) below therefore slipping below 5575 not expected in on going correction. Strong rally possibility within 2 weeks is very much high after completion of ongoing short term correction and market will take its own time in consolidation process within 5600-5672. As intraday consolidation seen at lower levels in last 4 sessions therefore expected that finally Nifty will cross and sustain above 5672 and strong rally will be seen.
Next strong moves confirmation range is sustaining beyond 5600-5672.
Global cues are quiet therefore big moves will not be seen immediately after opening today. Expected trading range of today is 5614-5672 and closing also expected between this range after most of the time trading within it.