Nifty is likely to find support at 4950-5100 range and here are the reasons:
1) Nifty for whole of 2011 was in downtrend by making Lower High & Lower Low pattern.
Now after making a Higher High in Jan 2012 Nifty is likely to make a
Higher low around 4950-5100 before heading to new highs likely by Q4 FY13
2) 50% retracement level of entire rally from 4540 to 5620 is placed at 5080
3) 61.8% retracement level of entire rally from 4540 to 5620 is placed at 4950
4) The upper trendline of the 1 year old parallel channel ( green lines ) is now somewhere around 5100 level which has already been tested once
before should act as a major support again for the index
5) The recently formed downward parallel channel ( pink | | lines) should also give support to the falling Index and is curently placed at 5050-5100 levels
So with these 5 reasons, the red rectangle support as seen in the chart should act as a base for rest of 2012
Regards
Ankit
Technical Analyst
Analyse India
09899899989
1) Nifty for whole of 2011 was in downtrend by making Lower High & Lower Low pattern.
Now after making a Higher High in Jan 2012 Nifty is likely to make a
Higher low around 4950-5100 before heading to new highs likely by Q4 FY13
2) 50% retracement level of entire rally from 4540 to 5620 is placed at 5080
3) 61.8% retracement level of entire rally from 4540 to 5620 is placed at 4950
4) The upper trendline of the 1 year old parallel channel ( green lines ) is now somewhere around 5100 level which has already been tested once
before should act as a major support again for the index
5) The recently formed downward parallel channel ( pink | | lines) should also give support to the falling Index and is curently placed at 5050-5100 levels
So with these 5 reasons, the red rectangle support as seen in the chart should act as a base for rest of 2012
Regards
Ankit
Technical Analyst
Analyse India
09899899989
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