mkt ahead...nifty 20th june 2011,,,

5600 was done again but 5700 was not reached since the bounce from 5328 just did'nt get pass the crucial resistances at 5600/5620 and profit booking coupled with net selling from fiis(net cash trading as shown in table below) ensured no more upside in the short term and brought it down again to lower lvls.

right now the nifty is again touching the lower end of our trend channel that has served its purpose of predicting supports and resistances accurately for such a long time. a testing time of 5300-5328 zone, since any break and stay below the channel for short term means bearishness till 5177.  still some more time before we can call it out of danger in near term.

as already been mentioned many times much before, there is a good bias toward 4700 once that lvl also breaks. the medium term has remained in downtrend since april second week, that intermediate top was also forecasted accurately near 5900-5950 as also the time.

but maybe some pullback/bounce might stll occur from 5300-5328 region, which might give some respite.

found something that someone might call a probable head and shoulders pattern forming on the nifty eod chart. once the 5300 etc breaks and if it goes down then minimum downside tgt then becomes 5300-600(distance of head from neckline of pattern)=4700 again the same figure.

so trade cautiously and only in small lots. many stocks particularly from infra, telecom sector in smallcaps and midcaps do look attractive in near to short term but also keep overall mkt direction in mind while taking positions.