IT IS THE CHARACTER OF FINANCIAL MARKETS THAT THEY PREPARE FOR A MOVE AND AFTER THAT FINAL STRONG MOVE COMES AFTER BREAK OUT.AS AFTER 5 MONTHS BREAK OUT STRONG RALLY BEGAN IN MARCH 2009.NOW THIS RALLY HAS STOPPED AND MARKET IS RANGE BOUND(3312-3511) FOR THE LAST 5 DAYS.IT IS VERY MUCH CLEAR THAT THERE IS VERY GOOD SELLING AT HIGHER LEVEL OF THIS RANGE AND HIGHER LEVEL OF THIS RANGE IS NOT GOING TO BREAK EASILY AND COMPLETE CONSOLIDATION REQUIRES FOR ITS BREAK OUT.YESTERDAY TRADING RANGE WAS 3330-3410 AND WITHIN THIS RANGE BUYING WAS SEEN BETWEEN 3330-3360 AND SELLING OBSERVED BETWEEN 3380-3410.IT IS CONFIRM THAT NIFTY WILL FIRST TRADE BETWEEN YESTERDAY RANGE(3330-3410) AND PREPARE FOR NEXT MOVE AND BREAK OUT OF YESTERDAY RANGE WILL GIVE FIRST SIGNAL OF NEXT MOVE.UPWARD BREAK OUT IS NOT MUCH EXPECTED BECAUSE THERE IS GOOD SELLING AT HIGHER LEVEL. DOWNWARD BREAK OUT POSSIBILITIES ARE MORE AND IN THE SITUATION OF DOWNWARD BREAK OUT WILL MEAN BEGINING OF CORRECTION.
INDIAN MARKETS WILL OPEN ALMOST FLAT AND WILL TRADE FIRST BETWEEN YESTERDAY RANGE.TODAY INTRADAY PATTERNS WILL CLEAR NEXT MOVE.SELLING,BEGINING OF DOWN MOVE AND RED CLOSING IS EXPECTED WITHIN NEXT COUPLE OF SESSIONS BUT POSITIONS SHOULD BE TAKEN AFTER EITHER AFTER CONFIRMATION FROM TODAY INTRADAY CHARTS OR BREAK OUT OF YESTERDAY RANGE(3330-3410).
(LALIT KUMAR DHINGRA)
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