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 3rd 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.
