NIFTY AS ON 17/06/2010

Nifty closes just near the channel resistance forming bullish inverted head and shoulder pattern shown by purple line if nifty able to close above 5350 levels we can make new high also as that shall be the channel breakout.  

FII net buyer in cash segment while DII net seller

For tomorrow nifty shall remain bullish until it is  above 5255 with upward targets of 5305 – 5334 – 5383 with stoploss of 5236 below which nifty shall become weak with downward targets of 5187 – 5157 – 5108

I have booked my longs on 16/06/2010 at channel resistance and shall wait to buy on dips or for breakout at present I am not holding any position

As said that hourly charts are overbought with minor divergence nifty might correct if trades or opens below 5230 for minimum tgt of 5170 but nifty made low 5206.55 which was first downward target given and the hiting the stoploss of 5240 gave breakout on upside.

Now to make it clear from my side that our target of this wave is almost achieved and at the channel resistance and if ables to close above the channel red line then there could be breakout of further 150 points also as daily charts are overbought but there is no divergence on daily as yet and as per me if this is the high for the wave then nifty can correct on downside 5160 - 5125 – 5090  where one could reenter for higher targets on nifty (note atleast nifty should give correction upto 5160 levels to get strength  to go higher and may be this chance shall be due to some bad globle cues overnight )

Also tomorrow reliance AGM at 11.00 Am so it seems that market might hold 5236 levels which could react on Monday and tomorrow nifty might make inside day as today was outside day.

Positional shorts below 5080 only until then try to buy near stop loss or play intraday levels.  Nifty swing shall change if close below 4960 WHICH IS MARKED BY PINK LINE for two days till then swing is Up