Market Review for 1 Feb 2010
The index has formed a hammer candle-stick pattern at the end of five waves decline, which is a bullish signal for wave two up. The momentum indicators on the daily and weekly charts appear in the sell mode. So, the medium-term trend is down but in the short term the retracement of the fall from 5310-4766 in the form of wave two up is expected. Nifty had closed below its 20 weekly exponential moving average (WEMA) for two consecutive days; this will act as a hurdle going ahead. Rest will depends on Foreign Markets Nifty has also given a negative weekly close, which suggests that wave one down is over. On the monthly chart the Sensex has formed a bearish engulfing pattern, which clearly indicates that the top is in place. The rise in record after record volumes with declining prices too suggest that the medium-term trend is down. In nutshell we revise our short-term bias up for the retracement of wave two.
Nifty Close 4887
Nifty Support 4825-4766-4700
Nifty Resistance 4910-4986-5045
