Sep 14: When the Last Bear turns a Bull... Sell!!

The movement of Nifty in the Past few days could has left most of the traders dumbfounded. There we were, on the verge of breakdown near 5360 last week. But the force of this upmove has left everyone dumbfounded.

Technicals are highly in favour of the upmove continuing. This might be the breakout that everyone was looking and waiting for months. A look at the chart below will tell us that the price is currently moving above all major averages and supports. Buyers will now come in at all dips near the support areas.




However, the leading indicators are in the overbought status. We might see some rangebound activity today after the heady upmove from yesterday. A time correction will correct the OverBought status of Nifty.

We would still prefer to wait and watch this upmove of Nifty. When everyone around has become so Bullish on the Nifty, it Scares me. As they say, "When the last Bear turns a Bull... SELL!" Well, Don't go out there and Short blindly, but wait to see the first sign of weakness and then jump in. Don't get caught on the wrong foot at such high Levels. It is better to miss the rally altogether than Risking your money. Stay out in Case of ANY Confusion. JUMP IN as soon as you are SURE!

For the day, first support comes near 5740 levels, break of which may see Nifty sliding towards 5710 levels, where buying support is likely to emerge. On the upside, resistance comes near 5780 levels. Realresistance for this upmove will come near 5820-5835 levels, from where, a milk correction may be witnessed.

For 14 Sep - Nifty spot resistance at 5780-5800-5815-5835. Support at 5740-5710-5695-5670 - http://www.niftypower.com/