11-Nov-2011 Nifty Outlook: Yesterday, Nifty took support at 5142 which was a neckline breakout level of W-pattern on daily charts suggesting bullish call isn't over yet.
Analysis:
Few observations due to which I am bullish on nifty for the short term are: (shown in chart also)
>>Nifty broke-out from 5140 levels(W-pattern) with a huge gap up on 28Oct (which is called breakaway gap in technical analysis and very bullish in nature).
>>Since then, nifty has been filling the gap and 5140 still holds, which is a positive sign.
>>RSI still on the breakout line and hasn't gone below it yet.
>> Yesterday nifty made a doji pattern indicating probably the short term correction is over and bullish momentum may continue Monday onwards.
Conclusion:
In view of the above, one can take a long call on Nifty at the current levels for a target towards 5380(its immediate high) with a stop loss at 5095 (nearly 75 points) with RRR 1:3 (approx).
Analysis:
Few observations due to which I am bullish on nifty for the short term are: (shown in chart also)
>>Nifty broke-out from 5140 levels(W-pattern) with a huge gap up on 28Oct (which is called breakaway gap in technical analysis and very bullish in nature).
>>Since then, nifty has been filling the gap and 5140 still holds, which is a positive sign.
>>RSI still on the breakout line and hasn't gone below it yet.
>> Yesterday nifty made a doji pattern indicating probably the short term correction is over and bullish momentum may continue Monday onwards.
Yet another reason which indicate positive outlook of nifty is Dow_jones has started rising again after a short correction post its breakout from 11700 levels, currently its quoting at 12116 levels very near its immediate high 12256, once this level is crossed we will see a immediate rise in nifty towards 5400 levels.
Conclusion:
In view of the above, one can take a long call on Nifty at the current levels for a target towards 5380(its immediate high) with a stop loss at 5095 (nearly 75 points) with RRR 1:3 (approx).
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