Nifty has moved over 300 points in March 2010. The recovery from the lows during the month helped Nifty move up within striking distance of the resistance level at 5300.
However, Nifty has once again reversed from this insurmountable resistance level and has slipped below 5210-5220 levels. One can expect the down trend for the coming few sessions before we eventually find Nifty moving higher and breaking its 52 weeks high at 5310 levels.
OBV was trading in over bought zone from previous few trading sessions and a correction was expected. We do not expect this correction to deepen and Nifty is likely find support at 5100 levels.
Nifty is in an uptrend and trend reverses only below 4675. We have witnessed a series of higher highs and higher lows and we expect this formation to continue. There fore any correction in the markets should be used as buying opportunity.
Weekly chart is showing bullishness and we are likely to see Nifty moving higher than 5300 after a consolidation or correction gets through in the near term.
We recommend buying on every dip keeping a stop loss of 4675 for all long term trades and 5100 levels as stop loss for short term trades.
First Resistance for Nifty can be seen at 5310 levels after which we expect Nifty to move upto 5450 – 5500 levels. On the down side we find first support at 5100 after which 4850 levels may be seen.
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