STILL BULLISH

On 18 APR it has been mentioned that "  INTERMEDIATE TREND is still down. But today on hourly chart it gave breakout above 5306.75, so now if it gives daily close above 5306.75, INTERMEDIATE TREND will also turn up." WHAT HAPPENED - on 19 Apr it closed at 5332.4, Thus ON Thursday 19 Apr INTERMEDIATE TREND also turned up. SO NOW SHORT, INTERMEDIATE AND LONG ALL TIME FRAMES ARE SHOWING UP TREND.

On Friday 20 Apr. whatever may be the reason ( some say it is trading error ) NIFTY FUTURE intraday made low of 5000, because of which many traders/ investors became nervous.( if interested see link http://www.thehindubusinessline.com/markets/stock-markets/article3336580.ece ). Reliance results which declared on Friday after market timing are not according to expectations, macro-economic fundamentals are yet not suggesting possibility of UP TREND. STILL WE ARE OF THE VIEW THAT THERE IS HIGH PROBABILITY OF UP MOVE AND IN NEXT 2-3 MONTHS NIFTY MAY SEE 5700 LEVEL  AND IF FUNDAMENTALS IMPROVE MAY SEE LEVEL OF 6000 OR NEW LIFE TIME HIGH IN NEXT 1 YEAR OR SO. This view is because  we always follow SCREEN/ CHART/ PRICE ACTION, and as of now it is showing possibility of up up move.

we will not discuss detail technical analysis- why we are bullish, since it may look boring to some of readers. Just giving two technical reasons for bullish view.

1)

PIN BAR

 As shown in above chart NIFTY had made pin bar candlestick pattern on weekly chart ( week ending 30/3/12. And this PIN BAR has formed at very significant pivot point ( YEARLY PIVOT POINT OF NIFTY 5112.)
If anyone interested in reading about PIN BAR CANDLESTICK REVERSAL PATTERN VISIT THIS LINK http://www.forextofreedom.com/pin-bar-candlestick-reversal-pattern  

2)

BULLISH ENGULFING

As shown in above chart this week NIFTY had formed BULLISH ENGULFING PATTERN on weekly chart which again suggest possibility of up move.

If anyone interested in reading about BULLISH ENGULFING PATTERN visit this link http://www.candlestickforum.com/PPF/Parameters/16_441_/candlestick.asp

CAUTION : - AS USUAL U NEVER KNOW WHEN MARKET WILL REVERSE ITS DIRECTION, SO KEEP EYE ON 5135 LEVEL, IF NIFTY GIVES WEEKLY CLOSE BELOW 5135 THIS WHOLE VIEW OF LONG TERM UP TREND WILL GET NEGATED AND THERE WILL BE POSSIBILITY OF DOWN SIDE.

 DISCLAIMER: This Blog is meant for sharing our trading and investment ideas only and no calls to be taken as trading / investment recommendation. Visitors please do your own research or consult your advisers for safe trading, investing.