Caution Ahead - "Gravestone Doji"!!!!

For the Indian stock markets the 18000 resistance seems to be a strong one to surpass. Not only technically but even fundamentally, the reasons for a sustained rise are getting lesser and lesser.

On the Weekly Price charts, Nifty has made what is known as ‘gravestone doji’. This is a reversal pattern in candlestick terminology.



A Break below 5250 may be considered signs of weakness and a further fall towards 5150 – 5040 cannot be ruled out.

Upper side moves have resistance near 5360-5375 levels which are quite difficult to surpass. In fact the techno-fundamental structure of the market is such that even if there is an upward break out (for some reason) one should still remain skeptical of the same.

Investors would do well in protecting their profits while traders may want to play the downside up to 5040 initially. Overall trend is likely to remain sideways between 4900 and 5300 till either of the extreme values are broken with volumes

Happy profit booking !

CA Rajiv D Khatlawala
www.investogyan.com
Creating Educated Investors
"If not the GODS, put the ODDS on your side"