NIFTY- Have we been 'here' before ?

On weekly price analysis , the Nifty gave off five weeks of slow (and tired) upward movement in the current one week. Well again this seems to prove the theory - markets take longer time rise than to fall !!!!

But the Nifty weekly price chart also gives interesting view ! The slow and confused movement of past few weeks is 'similar' to that seen during end 2007 / early 2008...



Now, now .. I am surely not wanting to scare you... "Jo dikta hai woh bataa raha hoon"...

Anyway, this at least 'tells' us that we must surely be careful with long positions (if any) ... Become bullish ONLY above 5300 -in fact I have been indicating this for past so many days. . .

The technical indicators (including advanced indicators) are suggesting 'extreme' caution.. (Participants of my workshops - please analyse weekly charts with all parameters discussed)

For the coming week, expect 4970 to be the crucial support and a break below this will mean that more sell off is to come before the union budget. I shall now want to buy stocks near to 4600 levels especially if this level comes before budget!

Happy profit booking !

CA Rajiv D Khatlawala
ValueTrade Academy Pvt Ltd.