In the last post, we argued that strong support exists for Nifty future in the 5650-5700 zone and though the trend channel was broken,it was not to be taken too seriously , unless and until this support zone is taken out. This week, till now ( i.e. 5th march market closing ), Nifty behaved the way exactly we thought it would. So far so good, it seems. If it remains like this, last few weeks down-move will then be considered as nothing but a retracement of the recent upmove. We also argued in the last post that longer term charts are still in bullish mode. This weekly closing would make for an interesting watch. A weekly close above 5900 would squeeze the bears very hard and prepare the ground for next 200-250 points upmove. On the contrary, if bears manage to make a strong comeback in the remaining part of this week and ensure the fall of 5650-5700 zone, bulls would be bracing for really rough times. Which way it will go ?
Our trading philosophy prevents us from 'predict'-ing ( we love to react , actually ! ) market movements, still we are slightly tilted towards the Bull-case scenario.. and this is strictly because of the set-up in the longer term charts.
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