Nifty update (spot level ) 21 October 2013
1.Nifty had a close of 6204 which is one of the best close from 2010.
2.Thought it hasn't given any sell signal yet , but some patterns make us to take back seat at this stage .
3.We can see broadening top formation on 60 min with negative RSI divergence .
4. Doji close on daily , making us to think why bulls got tired even though nifty was sustaining above 6170.
5.Doji does not mean to sell , it is just an early signal to get alert .
6. On 22 October we need to see who takes in charge bulls or bears , in case of bear they need to hold market below 6150 till 10.55 am, and in case of bull, they need to protect 6150 till 10.45 am.
7.Nifty may face resistance at 6231 and support at 6150
Yesterday's candle can also be taken as an evening star, a bearish sign. And as expected, nifty opened gap down and may close -ve too. But, nifty may be tiring out in immediate term and mid/small caps may stage a rally for a few days. Having said this, overall uptrend is still intact as long is 5980 is respected and 6280 is taken out latest by next week. Good luck Ajit for your website. :)