Nifty - breaks 4800 - What now ??

My regular readers will recollect that on May 26th I had suggested that 4800 is crucial and key support for the Nifty and that "a break below this will further aggravate the situation".

Moreover for the heavyweight and market sentiment mover Reliance Ind - I had indicated that a break below 2480 will be negative and it will try to touch 2200 price levels in coming days.

Both above 'events' have taken place and we now need to evaluate the future course of action!



Upmoves for the Nifty may be treated as corrective in nature as the medium term trend which was weak is weakening further.Upmoves are likely to face resistance at 4825 and 4875. (In fact if many of you have computed- 4875 was this week's Pivot! which got broken in intraday)

Consider a temporary halt at 4625-4640 levels. Overall medium term trend remains negative.

You may also rememeber that 4600 is also the neckline of the weekly Head and Shoulder formation !! Hence the importance of this level

Happy trading

CA Rajiv D Khatlawala