Monday, March 18, 2013

Nifty... remain bullish above critical trendline



In our recent posts, we argued about this downward trend-line which Nifty future broke through successfully on 7th March and made a re-test of the same on 14th March. We also said that its critical for the  bulls to defend this extended  trend-line  [ pl see chart above ] as it has now become a new zone of support. Today's action , though  a bit unnerving for the bulls, they should not be unduly worried till the time they successfully defend this trend-line  In fact, risk reward is now in favour of the bulls as they have a well defined stop loss level i.e a downward breach of this trend-line.

We continue to maintain bullish outlook on the longer term charts and only a March monthly close below 5700 would alter this view and we would become bearish. But till that happens, bulls have advantage on their side.

Profit has a new address. You are welcome www.smartkapital.in 

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