07th aug 2009...

posting the nifty spot support resistance chart again after 23rd and 28th july 2009. caution was advised in the 4th aug 2009 post also.

nifty rsi and price brks on short term downside after encountering supply near 4700. shorting opportunity after brk below 4660 and 4630. yday's closing is a bit weak, if continues downmove say below 4570, the next lvl where support can come is between 4380-4480. these can be seen from the chart above.

dow jones and snp500(us)...

s&p500(us) and dow jones fibonacci retracements and near term resistances weekly charts:

market ahead...

finally 4700 and more done in style with a breakout closing. so where is nifty headed to now. technically many tgts you may be reading from various people e.g., 4800/4850/4950/5100/5300/5500 and neither will they give any logical or technical explanation for the same:)

as previously put we are entering a cautious zone for investors 4650-4700 to wherever it goes. on p/e basis around 4900-4950 it becomes expensive if this is bear mkt rally, even if its a bull mkt upmove that is a good profit booking lvl.



nifty spot chart showing negative divergence. also, the breakout has been on low volumes. currently rsi facing resis on the line shown which was marked in previous posts. in my view better way to ride the upward momentum is by following a good trailing stop.

(chart courtesy: www.icharts.in)

some updates...

nifty closes above crucial 4600 and 4693 is on cards.

quick update on commodities(follow up short term view):
mcx crude: mcx crude reversed again into short term bullishness, closing above say 3350 can extend gains upto 3500. nymex crude is already looking bullish after brkout toward 73-74 lvls.
gold: gold showing some signs of recovery, but confirmation of short term uptrend closing above resis of $959/oz, if brkout happens can rub the bullishness on domestic prices.
copper: no better commodity than copper which is maintaining its strong uptrend, 265 held very well and bounced off.