Wednesday, November 3, 2010

Nov3 update

Nifty bounced above 6150 and moved again in a narrow range of 6150-6180 with moderate volumes and neutral breadth.Important points for today.

1.Nifty up by 0.7% with 1.45 breadth.
2.15th day since the highs of 6284.

Nifty's move today though +ve but was weak on breadth and was in a very narrow range.Breakout/breakdown looks imminent from here.Nifty didnot exhibit any strength in the 6150+ price range,volumes and breadth too are not confirming a strong trend.I dont expect sideways move to continue here ahead.Since Nifty has moved upto 65-70% retracement,I would look for reversal of Nifty from here.
But any strong momentum move above 6200 only will invalidate my bear scenario,for possible upside targets of 6400-6600.

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