Nifty One pager report forming Bull Flag Pattern Formation Top

Trading Call: Sell at the level of 5250 CMP Target of 4500 - 3800 – 3200 – 2500 levels, Resistance is seen at 6400 Closing basis.

Nifty we look at positional chart from year 2002 onwards where it was trading at 900 levels from there the rally was started and slowly and steadily it tested the level of 6340 in year 2008 starting. In the same year we have seen a massive selling from the all time high and tested the lower level of 2500 looking at the crises in the market. It remain at this lower level of 2500 for 2008 year end and first quarter of 2009 and again market picked up a rally and tested all time high of 6340 but failed to cross the same where profit booking was seen. This profit booking from 6340 brought down to test the level of 4540 where value buying was seen which again brought to 6383 just above all time high on 3^rd November which was Sunday Diwali Mahurat trading where market were open in evening from 6 pm to 7.30 pm.

Looking at the chart it is forming Two Bull Flag Patter Formation tagged as Base 1 and Base 2.

Base 1:                  Bull flag pattern difference is 5440 points

Base level of flag is seen at 2500 Nifty any trade below 3000 or 2800 will be expected entry level as one should not wait for precisely 2500 Nifty.

Breakout of Bull Flag pattern is seen at 6300

Nifty is expected to test the target of 11600 levels in period of 10 years by 2024 – 2025.

Base 2:                  Bull flag pattern difference is 3800 points

Base level of flag is seen at 4500 Nifty

Breakout of Bull Flag pattern is seen at 6300

Nifty is expected to test the target at 10100 levels in period of 10 years by 2024 – 2025.

               

Nifty if we look at the Pattern formation its getting strong reversal from 6300 level of closing basis and if sustain trading is seen below 6100 will test it straight to test the next rock bottom support level of 4500 where previous 2011 December  bottom was seen and market reverted from the same level. If on weekly closing basis 4500 is sustain then might fall further where 3800 to 3200 is confirm and might also move to test the level of 2500 which was 2008 year end Bottom level. There is a high probability that market will take a small support at 4500 and a short range bound movement is seen but if the same is broken then 3000 to 2500 is nowhere in medium term.