NIFTY Analysis - EOD Jun 29th '12

NIFTY finally decided to break the 100 to 130 point trading zone between 5060 & 5190 in the last trading zone. NIFTY posted a 129.75 point movement up on Mon with 2.52% gain

NIFTY and most of the index based stocks showed up a long white candle which is a positive sign of a breakout with good volumes

5190 acted as support with low registered at 5189 and high at 5286.75

In my previous post http://analyzestockmarket.blogspot.com/2012/06/nifty-analysis-jun-27th-12-fibonacci.html I had specifically mentioned about a breakout happening anytime and we did see that happening in a major way. Thanks to positive news flow coming out of 2 day EU summit

Fibonacci extension levels are mentioned below

Connecting low of 4531 & and high 5064 we can get the following levels as given below,

23.6% - 5190

38.2% - 5268

50% - 5331

61.8% - 5394

78.6% - 5483

PARABOLIC SAR


PARABOLIC SAR still intact with upward movement showing below candlestick charts and that shows some more upmove possible

Yesterday a clear breakout signals a widened PARABOLIC SAR point after few days of clustered movement

RSI Indicator

Some more upmove possible with RSI  indicator showing upward trend and has still not yet reached over bought zone

Next million dollar question is so what's next?

With the above fibonacci extension levels shown on chart, we can say that a possible upmove until 5330 is possible and on cards before a small correction & consolidation coming into picture

Finally by mid week of July we should see NIFTY touching close to 5400 i.e. 5394 before seeing a decline back to 5064 levels and also below

Until NIFTY shows signs of a downtrend, do not short the market, go along with it and buy stocks which have fundamental strength