Tuesday, January 10, 2012

Banknifty might have a clue about where Nifty may go!

I feel my view of Nifty getting resisted around 4865 - 80 levels is gaining in credibility, and the additional confidence comes from the chart of Banknifty. We can observe a triangle in wave 4 of Banknifty in the adjacent chart. Also RSI is nearing the OB zone, MACD is setting up nicely for a negative divergence on waves 3 and 5. So if all this happens then we are very close to seeing a top, at least short term one on Banknifty, and Nifty though is forming a different pattern will not diverge too much from Banknifty. I feel a surprising BAD result from a couple of major companies may spook the markets.

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