Dear All,
Attached herewith are 2 charts for the Nifty which clearly show that the Nifty is on the verge of breaking a major long term channel which was started in 2009. Although we did try to break this channel on the upside we seem to have re-entered this channel since Jan 2011.
We have taken support 3 times on the bottom end of this channel and we are again at the same level. We have been overbought every time the Nifty has tested this channel and this time too is no different. However judging the FII selling and global queues, I believe that we might break this channel on the downside. If 5340 is broken on Monday or in the coming few days, we might witness some major momentum on the selling side.
I would advise everyone to avoid trading the Nifty right now and if you would have gone short on the 5900 levels as per our last advise then book part profits at current level of 5366. 9% profit made in 2 months on the Nifty.
Thanks,
Dewang K Mehta
DENIP Consultants Pvt. Ltd.
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