Detailed Nifty Analysis 16 Jun 11

Summary

Markets have been stuck in a zone from past 1 year or so, making it useless for traders and investors (to some extent). 2 years ago there were loud voices of recession, and suddenly media stopped talking about it! Do recessions come and go so easily? Did it really come?

Technically, Nifty made a MAJOR DOUBLE TOP, the lifetime high could not be broken. We highlighted this thing quite sometime back… Now, on medium term, there are 2 things: A major HS, and a smaller RHS. The HS will activate below 5370, and RHS abv 5600.

On the longer term chart, there are supports visible near 5370 and the next LAST and STRONGEST support is at 4800 zone.

Summary

So all in all, 5370 is THE level. If holds, the next testing area would be 5500. But below 5370, if holds decisively, 4800 seems to be the next target.