SENSEX: we termed the
up move from august lows as corrective and we clearly said through this month
that the august lows will atleast be tested once.
That is what happened as SENSEX while finding support at
1.618 % retracement level took support at august lows and bounced back sharply.
A HAMMER candle pattern needs follow up move and a close
above 16393 can be considered as a good follow up.
Price pattern may look like as a DOUBLE BOTTOM if the up
move continues further.
NIFTY : here is an interesting observation regarding quarter
end move in SENSEX /NIFTY since last four quarters.
SENSEX rose from 19074 to 20552 NIFTY from 5721 to 6147 in
last 12 days of December quarter SENSEX rose from 17792 to 19575 NIFTY rose
from 5348 to 5872 in last 9 days of march quarter SENSEX rose from 17314 to
18873 NIFTY rose from 5196 to 5657 in last 8 trading days of june quarter WILL
history repeat now ?
We have just 4 trading days but looking at the HAMMER candle
pattern on NIFTY chart yesterday we may have four good days of up move to end
the September quarter.
NIFTY successfully tested the august bottom and found exact
support at 1.618% retracement level of 4760 as it made a low of 4756 and
bounced back sharply.
A close above 4930 is a must to confirm some up move to
follow.
Short term positional traders should avoid shorts as NIFTY
can have an initial target of 5019 on a close above 4930 and if NIFTY sustains
above 4876 one can go long.
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