Nifty moved sideways today with higher volumes and -ve breadth.Important points for today.
1.Nifty down by 0.2% with 0.4 breadth.
2.18th day since the lows of 4786(33 days of downturn).
3.Nifty crossed 5300 intraday today.
Nifty moved in 5250-5300 range today.With todays -ve closing and weak breadth,Nifty may have started its correction of the 335 point rally from 4967-5302.The important points to look out for would be 60% retracement -5100 and 100%-4967.
Since Nifty has taken 18 days to cover about 85% of the fall,so keeping the momentum,I expect Nifty not to go below 5100 levels in the correction.And in anycase 4967 must be respected.If this level of 4967 gets broken, I would look for a breach of 4500.
My anticipated move on the downside is 5200 (@25june)-4900(2July)- below 4500 after 5th July.On the upside scenario,given the +ve momentum,I expect Nifty to cross previous highs of 5361 next week ie by 25june and above 5400 by 2july.
So any -ve weekly closing next week(25 june) would be an indicator that down move is likely and the upside rally is likely a double top/Wave2/B and a bear trap.
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