mkt ahead 23rd nov 2009...

lets first have a look again at my nifty p/e chart with the circle marked providing resistance to the upmove(profit booking line).



from the last two posts,

Monday, November 9, 2009:

"to establish a stronger uptrend, the nifty has to move and stay above 4854-4864, if that happens then chances of touching 4937/5030 could be there, since the us dollar index is still supportive of some more of the rally in the global equity mkts continuing."

Monday, November 16, 2009:

"if nifty stays sideways to up for a some more days then a firmer uptrend may get established.

a few closings above 5030 if supported by global mkts, the nifty would be again more bullish to reach the previous high of 5182, if any profit booking comes and gets limited to 4880/4860."

nothing more to add, the profit booking/whipsaw did come and got limited above 4880/4860, also the tsl for longs as always was excellent enough to protect the positions.

nifty is losing momemtum but seems moving toward 5182 in the current upmove, once small resistances 5080/5110.50 are crossed, if the global scenario remains stable. thereafter tgts of 5250/5300/5388/5500 etc would be still open as long as the medium to intermediate trend remains up and any profit booking gets limited to 4880, iam not expecting anything more on the upper side beyond that. for monday the tsl for short term positional longs to be raised to 4990 closing basis.

nifty spot eod chart:

nifty needs to remain at least sideways or up, lets say above 4880, for a bullish crossover again of 20 dma and 50 dma, macd already had made a bullish crossover earlier.


fii's been net sellers in cash last couple of trading sessions/days.