Thursday, November 12, 2009

Markets in no mood to consolidate...Volatility expansion seen...What next?!


It was a great victory for the bulls to again conquer the 5000 mark and break the strong resistance of 4950 levels.

All the other indicators of bullishness won over the pattern theory, but then the volatility also seems to increase which makes it difficult to take positions either side. Certainly a consolidation here would give strength to the rally, but then it has not happened.

For quite sometime, 5050 had remained a key level, which was 50:50 in favour of the bulls and bears at one time. It looks like the maximum bulls can push Nifty is till 5050 level now, which also happens to be the 78.6% retracement on the fibonacci.

FIIs are still net buyers in the index futures and the PCR is still in favour of the bulls, but pattern will eventually catch up if no consolidation is seen and there will be a strong correction and it looks like a sell market near 5050 levels at this stage.

Resistance levels : 5031, 5045

Support levels : 4980, 4950


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Happy Trading
www.tripleint.com

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