Nifty Update

Nifty Weekly.

Nifty Daily.

Nifty moved as Anticipated.

Showing signs of maturity.

In our previous post we mentioned that Nifty had the tendency to reach approx. 6245. Paying high respect to our target the Indian Benchmark Index reached 6239; which from here on seems to be a likely top. 

A close look at both the daily and weekly charts posted above clearly show that the ongoing Parabolic advance might have reached it's peak and with the developments in the last two days have shown great signs that the ongoing up move has high probability to reverse. Both the charts have one thing in common and that is the day when Nifty made its high of 6239, it was just at the channel which we have been following since day one of our posts.

The channel has been highly respected ever since it's beginning in 2009. Noticeably, 6239 is also the approximate level of 123.6% projection ( see the yellow dotted lines in the weekly chart ). Also, to bring into account is the movement of the two days prior to day when Nifty made its current high of 6239. It showed signs of bearishness but were not confirmed. 

Another factor to be counted is the ongoing channel in the daily chart. Nifty has been moving in this channel for quite a few trading sessions now and to confirm 6239 as a top, the index has to break this channel on the down side. But if bulls come in to regain control on the bottom of this channel then 6065-75 could prove to be an important level. Once this is broken on the downside the next target for Nifty could be approx. 6025. A further downside can potentially take Nifty around 5960.

Hence, to summarize it, the Short Term trend is on the negative, bearish sentiments prevails in both daily and intra-day charts, with 6065-75 as the first targets and then further till 6025. But at the point of time when our first target is achieved one needs to check whether the ongoing channel will continue or not. 

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