>Markets Headed for New High (Ride the wave with Caution)

Long term View - Nifty
After making a low of 2539 in March’09, Nifty started making a “Higher Tops and Higher Bottoms”. It started a fresh bull run but it faced lot of resistance in the range of 4600 – 4700. It started consolidation on the range of 4000 – 4600 and spent almost three months. In August’09, Nifty broke the above mentioned range of 4600 – 4700 and continued its northbound journey and made a high of 5152 on 15th Oct.09.

Technical Pattern
•On August’09 Nifty broke the neckline of “Inverse Head & Shoulder” pattern on the weekly chart.

•The value of neckline of “Inverse Head and Shoulder pattern is around 4650.

•On the weekly chart, Nifty is continuously making “Higher Tops and Higher Bottoms”

•Nifty is trading above the 61.80% retracement level of the entire fall from 6357 to 2252.

•For last 6 month Nifty is trading above the 200 DEMA, now the value of 200 DEMA is 4205.

•On the weekly chart RSI and Stochastic oscillators are in the overbought zone.

To see the full presentation: MARKET OUTLOOK