TRADING STOCKS

Trading stocks is not easy, it is high risk and low probability of success for most of the traders / investors. A STUDY HAS BEEN REVEALED THAT 80% OF ACTIVE TRADERS LOSE MONEY. The most of the traders loose because they trade without a proven system. Don't even think about relying on anything or anyone else for trading advice. Trusting tip providers is big gamble. They don't know how to trade and make money, but they know how to sell stocks. Market manipulations also happen and is out of your control. That is why you must know what's going on with the money you invest or trade.Otherwise who knows what will happen. Insider trading puts small investors and traders at risk who are trading without system.You cant depend on company results also anymore ( remind satyam scam ). But you can fight with all these odd situations if u try to learn technical analysis and develop your own trading system. It is difficult but not impossible, u have to read lot, you have to see and try to analyze n number of charts, slowly but surely u will become successful.

The main aim of starting this blog is to help our friends who are interested in learning financial planning, investing, trading. While learning we have faced lot of problems, lost money also ( actually that is fee we paid for our learning ). But the most valuable fee we paid is in form of TIME , believe us we were spending on an average 75-80 hours per month almost for 4 years ( 4 YEARS  ), for surfing and reading material related to financial planning, investing and trading.

SO BOTTOM LINE IS TO BECOME A SUCCESSFUL TRADER U MUST HAVE PASSION FOR CAPITAL MARKET, U MUST TRY TO LEARN HARD, U MUST HAVE PATIENCE . YOU NEED YOUR OWN TRADING SYSTEM THAT WORKS PREDICTABLY IN ANY MARKET SITUATION.AND THE LAST BUT NOT THE LEAST  YOU MUST BE VERY MUCH DISCIPLINED TO FOLLOW  YOUR SYSTEM TO MAKE SMALL BUT CONSISTENT MONEY TO BECOME FINANCIALLY FREE. ALSO THEN AND THEN ONLY YOU CAN CONSIDER TRADING AS A BUSINESS.

SOME OTHER TIME WILL RIGHT WHY IT IS MOST IMPORTANT TO BE DISCIPLINED AND ALSO WHAT IS MEANT BY FINANCIALLY  FREE ?

INTERMEDIATE TREND TURNED UP

According to our trading strategy today intermediate trend turned up (i.e. BUY ON DIPS). So now short term and intermediate trend are up. BUT REMEMBER LONG TERM TREND IS STILL DOWN.

Since intermediate trend turned up it looks like now our dear nifty fifty will target the wall of resistance 5200 and may be after some retracement as mentioned in this link http://kolhapuritrader.blogspot.com/2011/10/inverted-head-and-shoulder-cup-and.html it will target 5350.

FAILED ASCENDING TRIANGLE

As mentioned in yesterday's post the making of ascending triangle failed, since instead of breakout today on hourly chart at 10 AM it broken down the support line and what a great fall after that.

That is why trading is called as game of probability i.e. you should always think of other possibility also and ready to take the opportunity.
NOTE :- These post's are for informative purpose for those who are trying to learn technical analysis and also to refresh our knowledge.
 At present according to our improved strategy we are still in buy (long) position.

CAUTION : LARGER TIME FRAME IS STILL DOWN 
DISCLAIMER: This Blog is meant for sharing my trading ideas only and no calls to be taken as trading recommendation. Visitors please do your own research or consult your advisers for safe trading.

NIFTY FIFTY

WEEKLY

Looks like intermediate term bottom is formed at 4720.

POSITIVE DIVERGENCE

The positive divergence (i.e. price making lower low while indicator making higher low) at the end of previous week (i.e. on 26/8/11) gave this whooping rally of 300-350 points in just 3 trading sessions on last week. REMEMBER, BEAR MARKET RALLIES ARE SHARP IN NATURE!

If the Friday's high (5113.7) is taken out then it will retest 5200 and try to fill upper gap 5230-5325, at the same time our trading system which is based on hourly time frame given sell signal on Friday so it looks like it will try to test 4800-4850 level once again.

So unless 5115 is not taken out upside is limited, at the same time recent low (4720) is not taken out downside is also limited. In short it will try to consolidate in next few days to weeks before taking any further direction.

Looking at Friday's close of European/ American market and today,s price at Asian market and sgx  nifty it looks like we will open at least 40-50 point gap down which is line with the sell given by our trading system on Friday.   

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

FOLLOW UP NIFTY IN TRIANGLE AND POSSIBILITY OF NEW HIGH

 We are talking of triangle pattern since last few weeks, on 31 July it has been mentioned that ---
NIFTY IS TRADING IN TIGHT RANGE AND NEARING THE APEX OF TRIANGLE, SO IT MAY GO UP OR DOWN AND SINCE IT IS NEARING APEX CLEAR DIRECTION WILL B RESOLVED IN NEXT 3-4 WEEKS. See the link http://kolhapuritrader.blogspot.com/2011/07/nifty-still-in-triangle.html 
       Now if u see the chart given below it has broken down the support line in week ending on 5/8/11

NIFTY TRIANGLE

 So according to as explained in chart since the height of triangle is approx. 1300 points (6350-5050=1300), the target will be 5400-1300=4100, WHICH WILL BE MOST PROBABLY REACHED IN NEXT 13WEEKS FROM WEEK STARTING 8/8/11 I.E.MOST PROBABLY UP TO OCTOBER END. 

Now if you can see the chart below you can note that there is one more chart pattern of  DESCENDING TRIANGLE, which was broken down on 12/8/11 (weekly basis)

NIFTY DESCENDING TRIANGLE

 So as explained in chart the target will be 5200-1150=4050 (Height of triangle6350-5200=1150), MOST PROBABLY THIS WILL REACH WITHIN NEXT 20 WEEKS I.E. BY DECEMBER END.

Eventually it looks like at least in next 6-12 months it should reach the above mentioned target, and most probably fill the ELECTION GAP which was created in May 2009.

THE ABOVE TARGET WILL BE VALID TILL NIFTY TRADES BELOW 5200, IF IT STARTS TRADING ABOVE 5200 WE HAVE TO LOOK FOR ALTERNATE VIEW.

Now you must be thinking about what happened to the possibility of new high we have mentioned previously, but kindly note that we have mentioned clearly that----
 BUT SEEING LAST WEEK CLOSE WE ARE HAVING FEELING OF NIFTY WILL TAKE OUT THESE RESISTANCES WHICH WILL BE MAJOR BREAKOUT FOR NIFTY ( i.e. IT STARTS TRADING ABOVE 5940-50 )  AND POSSIBILITY OF MAKING NEW LIFE TIME HIGH IN THIS FINANCIAL YEAR. BUT THIS VIEW WILL CHANGE IF  ----
1) It breaks today's low of 5791.55
2) daily close below 5693.25
3) weekly close below 5177.70 
        All the three supports mentioned above are eventually broken down, so that view got negated.
The above view of life time high has been mentioned on 26/4/11 in this post http://kolhapuritrader.blogspot.com/2011/04/trding-game-of-probability.html

FOLLOW UP CNXIT

On 12 June we discussed various trading pattern here http://kolhapuritrader.blogspot.com/2011/06/trading-patterns.html . In this post it has been mentioned that if CNX IT CLOSES BELOW NECK LINE OF HEAD AND SHOULDER ON WEEKLY CLOSING BASIS IT WILL TARGET 5600, SEE THAT AT THAT TIME IT IS TRADING AROUND 6650.
       Now if u observe the chart given below, it closed below neckline in next week i.e. on 17/6/2011 AND SEE THE MAGIC LAST WEEK OUR TARGET OF 5600 REACHED.

 PLEASE NOTE THAT WHEN THIS PATTERN NOTED ON 12 JUNE THERE IS NO NEWS REGARDING US DE-RATING! ALWYAS REMEMBER FOLLOW THE CHARTS AND NEWS WILL FOLLOW LATERON!!!

THE NIFTY HAS BROKEN DOWN FROM TRIANGLE WE ARE TALKING SO MANY DAYS SO THE POSSIBILITY OF LIFE TIME HIGH IN THIS FINANCIAL YEAR THAT WE HAVE MENTIONED PREVIOUSLY IS VERY VERY REMOTE NOW AND IT WILL GO DOWN FURTHER, WE WILL MENTION THIS IN DETAIL LATER ON WHENEVER TIME PERMITS. 

POSSIBILITY OF NEW LIFE TIME HIGH

See the post posted on 4 may 11 here http://kolhapuritrader.blogspot.com/2011/05/follow-up-trading-game-of-probability.html. Even though hourly and daily closes are below given levels, there is no weekly close happened below 5177.70, so possibility of new life time high is still open and it will strengthen if it closes above the resistance line shown in triangle pattern, AND IF IT CLOSES ABOVE 5950 THERE IS POSSIBILITY OF BLAST ON UPSIDE.   

AT THE SAME TIME REMEMBER THAT IF IT BREAKS LOWER TREND LINE WE WILL SEE MUCH LOWER LEVELS PROBABLY 3900-4000 ON NIFTY.
  
BUT OUR GUT FEELING IS THAT EVENTUALLY IT WILL BREAK FOR UPSIDE, BE CAREFUL THIS IS NOT TO DO ANYTHING WITH TECHNICALS OR FUNDAMENTALS THIS IS JUST GUT FEELING!  

FOLLOW UP NIFTY IN TRIANGLE

ON 28 may 11 we discussed regarding nifty in triangle. ALSO MENTIONED REGARDING POSSIBILITY OF FALSE BREAKDOWN OR BREAKOUT in this post http://kolhapuritrader.blogspot.com/2011/05/nifty-in-triangle.html. NOW LOOK THE FOLLOWING DAILY CHART U WILL B SURPRISED.

NIFTY DAILY

So once there is false breakdown, once false breakout and nifty is trading within triangle only. NEXT BREAKOUT OR BREAKDOWN WILL B REAL ONE SO KEEP WATCHING!

Now watch the weekly chart given below, observe that even though nifty has given false breakdown and false breakout on daily chart there is no breakdown or breakout on weekly closing basis

NIFTY WEEKLY

  Thus on weekly chart still it is looking like consolidation and next breakout/breakdown will b real one.

FOLLOW UP POSITIVE MACD DIVERGENCE ON DAILY CHART

On 27/6/2011 we have mentioned that it looks like this up move will continue up to upper boilinger band which is right now at 5660, in this post http://kolhapuritrader.blogspot.com/2011/06/positive-macd-divergence-in-macd-on.html. Today nifty opened at 5705.75, thus target has been achieved. This is power of technical charts. There are lot of negative news like rising inflation, rising interest rate, impact on corporate profits etc. till market is gone up.

POSITIVE MACD DIVERGENCE ON DAILY CHART

IF u watch the daily chart given below u can see that (1) on 23/6/11 there is BULLISH ENGULFING PATTERN  , the candle is marked with pink arrow. (2) there is POSITIVE DIVERGENCE OF MACD INDICATOR , (3) on 24/6 the candle is closed above upper resisting trend line, as well as above 20 SMA. The candle has been marked with purple arrow. (4) And finally today MACD also given buy signal, which is marked brown arrow.

 So it looks like this upmove will continue upto upper boilinger band which is right now at 5660, For daily close should not be below trend line which is acting as resistance up till now, now it will act support.

MAGIC OF PREDICTION WITH HELP OF TECHNICAL ANALYSIS

This is nothing but follow up of MAKING OF INVERTED HEAD AND SHOULDER IN HOURLY AND DAILY CHARTS under TRADING PATTERNS posted on last Sunday12/6/2011.http://kolhapuritrader.blogspot.com/2011/06/trading-patterns.html

If u have noticed carefully, it has been mentioned that to view the effect of inverted head and shoulder nifty should not close below 5440, otherwise it will test at least recent lows around 5330. If u have followed this u may have noticed that on 16/6/2011 at 10am hourly close is below 5440 ( exactly at 5415.9) and daily close is also below 5440 (5396.75) next day it headed towards 5330 already gone up to 5355 on 17/6/2011. Do u think this is just co-incidence ? The honest answer is NO , this is power of technical analysis and reading of charts with help of which u can predict future price movement and can get benefit from it.

TRADING PATTERNS

NIFTY

Bearish flag :- daily nifty chart showing formation of bearish flag from 4/5/11 to 11/5/11 which broken down on 12/5/11, giving target of 5250 which yet to be achieved even after 21 trading days so showing possibility of BEAR TRAP.
NOTE:- if nifty  closes above 5600 nifty reaching target of 5250 becomes remote.

NIFTY BEARISH FLAG

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BULLISH FLAG IN NIFTY :- If closes above approximately  5550 i.e. if breaks upper trend line shown in blue color nifty will target 5800 in coming days since AB=250 POINTS=CD, Hence 5550 + 250 =5800 

MAKING OF INVERTED HEAD & SHOULDER IN HOURLY CHART


The following chart shows making of inverted head and shoulder in hourly chart

MAKING OF INVERTED HEAD AND SHOULDER ON DAILY CHART

Following chart shows making of inverted head & shoulder on daily chart

 So the above two charts shows that if nifty closes above 5620 it will head towards 5800. CAUTION:- For this nifty should not close below 5440 otherwise it will test at least recent lows around 5330.

HEAD AND SHOULDER OF CNX IT ON DAILY AND WEEKLY CHART 

CNXIT-1M DAILY

The above two charts shows head and shoulder pattern formation in cnx it index on daily as well as weekly chart. If u observe daily charts it shows that on 25/5/11 it has broken down neckline on closing basis so it should target 5600, but if u observe weekly chart u will find that it has not broken below neckline on closing basis on weekly chart, also on 31/5/11 it closed above neckline on daily closing basis so it may be false breakdown or BEAR TRAP !!

BEARISH FLAG IN SBI REACHED TARGET

 The above chart shows formation of bearish flag in sbi chart from 4/5/11 to 16/5/11, which broken down on 17/5/11, giving target of AB= 400 POINTS = CD = 2600 -400 =2200 which achieved on 25/5/11.

These are some of the trading patterns happened in Indian market in recent days, hope this will b helpful to new bees who r trying to learn. Hoping for some feedback and comments from readers. 

NIFTY IN TRIANGLE

ON DAILY AND WEEKLY TIME FRAME IT LOOKS LIKE NIFTY IS TRADING WITHIN THE TRIANGLE

DAILY CHART

WEEKLY CHART

It is trading near the apex of triangle, so likely there is breakout/ breakdown within few days, until then it looks like it will trade within range, which for coming week will be 5470/75 -- 5850/60. The clear trend of nifty will b possible only after it breaks range of triangle. REMEMBER POSSIBILITY OF FALSE BREAKDOWN/ BREAKOUT.

If breaks lower trend line possibility of nifty going to 5200 and then to 4800-4900, if breaks upper trend line possibility of new life time high increases.

PROBABLE REASON FOR LOSS IN FIRST RADE

RECEIVED FOLLOWING EMAIL FROM FRIEND YESTERDAY

On 26th April 2011 there was a managed transaction in Nifty futures @ 5393, which is 400 points below MiniNifty low @ 5793. From that day onwards Nifty was closing in red for the last 9 days and now Nifty is approaching "that freak figure". Open Interest of Puts at strike price 5400 is the highest (5,401,300)today. Both these facts indicate that there was a big attempt to take down the Nifty to the desired levels of some of the BIG operators, which is against the interest of common people and small traders. For the safety of the interests of retail investor SEBI MUST investigate the said issue points and take appropriate remedial measures.
************ So Pl Send EMAIL TO SEBI in thismatter *********.

1)How above mentioned transaction took place when there was lakhs of entries?
2)Whether there is any inbuilt in mechanism to prevent such erroneous transactions?
3)Who are the parties to that transaction ? Who(buyer or seller) entered that figure and who benefited. Volume of that transaction? Any action taken by NSE/SEBI.
4)What are the checks to be incorporated in trading software to prevent such transactions in future.

NOTE:- DON'T KNOW IS THIS REALLY HAPPENED SINCE WE ARE USING ICHARTS FOR OUR CHART ANALYSIS AND THESE CHART ARE SHOWING 5793 AS LOW ON 26 APRIL FOR NIFTY FUTURE . MAY BE BECAUSE OF THIS MANIPULATION THERE IS DEEP LOSS IN OUR FIRST TRADE BUT THIS HELPED US TO ANALYZE OUR SYSTEM ONCE AGAIN AND WE FOUND SOLUTION TO AVOID SUCH LOSSES WHICH IS POSITIVE THING FOR US, AND WHICH WILL HELP US IN FUTURE IN OUR TRADES.

WE CHECKED NSE  SITE WHICH SHOWED FOLLOWING DETAILS --
see the link for nifty future on 26-4-2011 http://www.nseindia.com/content/fo/contractvol/datafiles/FUTIDX_NIFTY_26-04-2011_TO_26-04-2011.csv
 after checking nse site we realised that information provided in above mail is correct.

SO THIS MAY BE REASON WHY OUR SYSTEM FAILED TO RECOGNISE TREND CHANGE EARLY BCAUSE IN CHARTS WHICH WE ARE USING SHOWING LOW OF 5973, IF THE LOW HAD BEEN 5393,  INFERENCE HAD BEEN DIFFERENT. BUT SINCE WE ANALYZED AND BACK TESTED OUR SYSTEM ONCE AGAIN AND FOUND THAT WE CAN MINIMIZE SUCH LOSING TRADE IF WE USE ADDITIONAL INDICATORS FOR FILTERING, THIS IS POSITIVE OUTCOME FOR US. SO IF WE HAVE USED THIS FILTERS WE HAD EXITED OUR FIRST TRADE AT 5833.90 ( LOSS OF   22.9 POINTS ONLY) AND WOULD HAVE INITIATED SECOND TRADE AT 5833.9 WHICH SHOULD HAVE GIVEN US PROFIT OF 312.4 POINTS. WE ARE NOT GIVING EXCUSES FOR OUR LOSS BUT TRYING TO SHOW HOW WE CAN IMPROVE IF WE WORK HARD AND TRY TO LEARN.
 In performance sheet there will not be  any changes made, we will keep loss as it is , and see how is the performance including this loss after certain time period only. 

SOMETIMES THERE ARE MANIPULATIONS IN MARKET, WHICH ARE NOT EASY TO DO ALWAYS FOR PEOPLE'S WHO ARE DOING SUCH THINGS, THERE IS NO NEED TO STAY AWAY FROM MARKET BECAUSE OF POSSIBILITY OF MANIPULATIONS, BUT IF U CAN TRY HARD U CAN LEARN HOW TO HANDLE SUCH SITUATIONS.

FOLLOW UP - TRADING GAME OF PROBABILITY

On 26 april it has been mentioned that ----  SEEING LAST WEEK CLOSE WE ARE HAVING FEELING OF NIFTY WILL TAKE OUT THESE RESISTANCES WHICH WILL BE MAJOR BREAKOUT FOR NIFTY ( i.e. IT STARTS TRADING ABOVE 5940-50 )  AND POSSIBILITY OF MAKING NEW LIFE TIME HIGH IN THIS FINANCIAL YEAR. BUT THIS VIEW WILL CHANGE IF  ----
1) It breaks today's low of 5791.55
2) daily close below 5693.25
3) weekly close below 5177.70

But on 28 april first support (5791.55) broken on hourly chart, and second support (5693.25) broken on 3 may on daily chart thus the possibility is now weakning and short term trend is turned bearish ( downtrend ).

Trader always keeps all the possibilities open all the time and changes his views from time to time by seeing price actions taking place on charts. REMEBER, DONT BE ON BULL SIDE OR BEAR SIDE TRY TO BE ON RIGHT SIDE MOST OF THE TIMES.
 

FOLLOW UP - WHAT WILL HAPPEN?, FIRST RADE

On 2 MAY we have written regarding what will happen with help of few charts, In first chart it has been shown that trendline which is supporting in hourly chart was allready broken, also it has mentioned that 5690-5700 is important support which broken intraday ON 3 MAY, after that nifty fallen upto 5550 within single day. This proves that if you learn technical analysis and try to evaluate the things you can trade very well. This fall is after RBI credit policy which raised interest rates, but if you learn technical analysis there is no need to track the news, what will it's impact on economy, stock market , all this will b reflected in charts. Once again we will like to mention that we are not trading according to this techniques because this will require full monitoring of charts during market hours, and take or change your view according to changes taking place in charts. RIGHT NOW YESTARDAY DAILY CLOSE WAS AT IMPORTANT SUPPORT ONCE AGAIN, SO HERE AGAIN THERE IS POSSIBILITY OF BOUNCE BACK OR BREAKING THE SUPPORT.

What is happened to our first trade? It is still in buy mode according to our system, so the position is in deep loss on paper right now, right now looking possibility of we have to close the position with loss, but this will b done only after our system tells that there is change of trend. REMEMBER THIS SYSTEM IS DEVELOPED SO THAT IT WILL REQUIRE LESS MONITORING,

WHAT WILL HAPPEN?

On short term time frame nifty has broken important support line as shown in following hourly chart

So short term trend turned negative (downtrend), but as shown in above chart nifty is oversold so bounce may be possible.
But what daily and weekly charts are indicating?
Daily it is closed above 200 sma and important support line as shown in chart below, will this 200 sma give support once again?

5750 is acting as important daily support  on closing basis, see below

Below chart shows that 5690- 5700 acting as important support

  Above trend line which is acting as tough resistance is shown in above chart

IN SHORT 5690-5700/ 5750 IS IMPORTANT LEVEL TO WATCH IF THIS HELD NIFTY WILL RALLY. BUT ONCE IT IS BROKEN IT WILL BE BEARISH AND PRICE MAY LIKELY HEAD TOWARDS 5500.
ONCE THE TREND LINE ACTING AS RESISTANCE IS BROKEN POSSIBILITY OF NEWER LIFE TIME HIGH WILL INCREASE. 

TRDING - GAME OF PROBABILITY

Always remember trading is a game of probability, u should guess the best possible probability by using technical analysis. We will see how these probabilities work and what is the possibility we are seeing right now.

JUST SEE THIS POST http://kolhapuritrader.blogspot.com/2011/04/200-sma.html posted on 18 apr 2011.As mentioned 200 sma has given support on daily chart and nifty rallied from that level as shown in the chart below

Also on 17 april it has been mentioned that nifty is consolidating in the range of 5700-5950 and as can be seen in the following chart nifty has taken support at 200 ema on hourly chart.

So looking at these possibilities if trader has initiated buy position on 19 April with proper stop loss he must had profit of 200 points within 2 days since nifty had made high of 5912.80 on 21 april. Right now we also not trading these probabilities since it requires lot of follow up and monitoring of charts, in performance suggesting trades according to our trading system which requires less monitoring. Here just trying to explain how probabilities of technical analysis work, sometimes they fail also hence u have to change your view according to changes in chart.

Now let us see what is the possibility we are looking right now---
see how nifty is facing resistance that is unable to go above resistance line, and taking support that is unable to go below support line as shown in the daily chart below

Also see that it is resisting at important Fibonacci level on daily chart as shown below

 Many technical traders use fibonacci retracement to identify major support and resistance.Fibonacci retracement is created by taking major peak and low on a chart and dividing vertical distance between this peak and low by the key fibonacci ratios of 23.6%, 38.2%, 50% , 61.8% & 76.4%. Right now 61.8% retracement acting as resistance to nifty, hence short term trader can sell nifty here with proper stop loss.

BUT SEEING LAST WEEK CLOSE WE ARE HAVING FEELING OF NIFTY WILL TAKE OUT THESE RESISTANCES WHICH WILL BE MAJOR BREAKOUT FOR NIFTY ( i.e. IT STARTS TRADING ABOVE 5940-50 )  AND POSSIBILITY OF MAKING NEW LIFE TIME HIGH IN THIS FINANCIAL YEAR. BUT THIS VIEW WILL CHANGE IF  ----
1) It breaks today's low of 5791.55
2) daily close below 5693.25
3) weekly close below 5177.70

WILL IT BREAKOUT IN THIS OR NEXT WEEK ONLY ? WE HAVE TO WAIT AND WATCH .

NOTE : TO VIEW ENLARGED CHARTS CLICK ON CHARTS

KINDLY NOTE HENCEFORTH IN PERFORMANCE SHEET WE WILL MENTION NIFTY SPOT VALUES.

200 SMA

As shown in the following chart will 200 sma will become rock solid support? We have to wait and watch to find the answer.

TO SEE ENLARGED VIEW CLICK ON CHART.

DEATH CROSS OF NIFTY

Nifty chart is showing death cross in last month, whenever time permits  will post about what is meant by death cross, golden cross and what r its implications, will b explained by proper charts.

If possible will try to explain how market changes its mood in same post!

Right now nifty is consolidating in the range of 5700-5950, so there must b people on bullish as well as bearish side. Long term investors can hold there holdings with proper stop loss while short term traders can trade the above mentioned range untill there is clear breakout or breakdown.