The chart is self explanatory that if Nifty holds on to green line ( 4930 ) then expect it to touch the Red Line ( 5050 ). It will be difficult for Bulls to cross 5050-5070, till then we will remain in the range of 4930-5050.
Stock View: 3iinfotech
Bullish candle seen with high volumes. The stock is a buy at current level with a possible target of 93-95, stop loss would be 86
Dollar Index View:
View Posted on 7th dec, http://optionstech.blogspot.com/2009/12/as-i-expected-nifty-fell-from-5130-odd.html.
Dollar Index has bounced sharply back from the previous top made in June 2008 and it has retraced back to upper end of the downard sloping parallel channel, once it gives breakout above 76.3, expect 78 $ too in very short term.
Current View of Dollar Index:
It was posted on 7th Dec 2009 on the blog( check archives ) that Dollar will touch 78$ in short term, after 15 days on 22 nd Dec it has completed its target. Now where it is headed to? There are two lines which will act as a major hurdle for Dollar Index to rally further:
1) Red Line: ( 79.45): It is a combination of 3 resistances. Firstly, its the 200 DMA of the Index. Secondly, its the 50 % retracement level of the fall from 89.62 to 74.23. Thirdly, its a line joining multiple tops at 79.45 which were made in August this year.
2) Blue line: ( 81.90 ): If the Red Line is crossed somehow then the next major resistance is the blue line which is a combination of 2 resistances. Firstly, its the 61.8% retracement level of the fall from 89.62 to 74.23. Secondly, its a line joining double top at 81.9 which was made in June this year.
Have a wonderful trading dayRegards
Ankit
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