Thursday, October 13, 2011

AN IMPORTANT HURDLE CROSSED AS WELL


SENSEX : SENSEX rose sharply up after initial unbelievable volatility and has crossed another important hurdle at 16756.
We still have two days left in this week but now there should be BUY ON DIPS till SENSEX remains above 16756 on closing basis.
We believe that even poor results have been discounted in the current price so a LITTLE BIT better results will cheer traders/investors.

NIFTY :
any dip up to 4997 and 4965 should be a good buying opportunity.one caution is that such a dip should not be so fast as to close below 4965 in a single day.
targets : 5156-5177 and than it should make a higher bottom if that happens or on a strong close above 5177 NIFTY will have a target of  5225-5340.
4851 has now become a very strong support and trend decider level.
If one carefully reads our weekly chart book on 5th September we said that markets will have a significant upside after they show POSITIVE DIVERGANCE on daily chart and upside will come after TWO CANDLE REWERSAL PATTERNS on weekly chart.
Both things are in place on daily & weekly charts.
Two days still left for the week to end so NIFTY MUST close above 5034 for further upside targets.

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