No doubt the Japanese Candlesticks pattern of a 'Long Legged Doji' occurred on the weekly charts.
The weekly charts indicate the Nifty near a strong historical resistance / supply area and the weekly RSI too is overbought for some time. This is not a common event and the RSI , though an oscillator, may not continue to remain in such overbought condition for long.
A correction is emminent - but is elusive, so to say.
I presume that a Nifty break below 4550 should start the correction process and the first target will be near to 4340...
Watch out and book your profits (and keep them!)
CA Rajiv D Khatlawala
Head of Research & Training
JHAVERI Securities Ltd
Baroda
2 comments:
is this market also ready for shorting? if yes what is the minimum risk trade which one can enter.
Rajiv, your first target was achieved today...what is your next target for Nifty and also, what is your take on Zinc and Nickel at the moment? Zinc is so close to the stop loss point that you mentioned and Nickel also seems to be retracing its recent rise..eagerly awaiting your response....
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