Thursday, October 10, 2013

NIFTY as on 10 OCT 2013 .

   NIFTY    
 TIME TARGET  TREND   REVERSAL TIME 
 Medium term trend 5565 Down 6010 2-3 Weeks
MEDIUM TERM
A multi-month triangular pattern complete the market is set for some big moves. But that has been the case for the last couple of months as well. The high VIX readings point to continued volatility. The 61.8% mark at 5520 should soon be tested by wave iii down. 3-5 weeks of market weakness might lie ahead thanks to the seasonal October blues. The 40wema at 5774 was protected last week by buyers so lets see if they can keep up their enthusiasm. The Nifty left behind a gap above 5688 when it was going up in September, it will be interesting to watch that gap get filled. We are in the third month since monthly momentum indicators rolled over to the sell side. The number of inter market divergences around the world makes up for some fine writing. The lower Bollinger band on the weekly chart is at 5439. The bands have remained in a narrow range for an extended period of time despite the recent volatility as prices were unable to hold beyond the outer range for long. But prices seem to keep trying to push their luck on each side with increasing ferocity. 


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