Tuesday, January 4, 2011

Nifty & Bank Nifty update 4 Jan

Nifty is struggling at 6200 mark which is an important level to cross for the bullishness to remain.

The 6200 level is also the 76 retracement level of the recent fall from peak and for Bank Nifty the levels of 11900 is the 38% retracement.
So for further bullishness from here the indices has to cross these mark otherwise it can be another bounce back rally.

In Nifty there have been many instances where the index bounces to 80% of the levels and then starts fall again.
For that we need to see action at 6220 levels, if the volume returns above those levels then it can make a new high.

One more area of concern is the low volume activity on the rise which is a bit bearish here.

Bank Nifty: The index stalling at 38% retracement level itself shows that there is weakness and it can continue to log for some more time.The 11700 is an important level to maintain for any bullishness.

The system is long with first stoploss at 6150 levels.

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