Into a new week once again and Nifty is still holding up it's support although reacted a bit from the higher level last Friday. Frankly nifty is in a clear yet dicey situation where levels will work well, but trend will still under some doubt, be it down or up. Actually the decisiveness comes from the larger move and it often occurs in case of Index movements. We had a steep fall of almost 650 points from 5303 up to 4667. The movement is indicating towards 5 wave decline where the extensions might or might not took place. In that case another leg of down move can be expected. Bit it's not all simple enough. The up move from 4520 (the previous bottom to 4667) which showed a high of 5303 is still to achieve the targets of 5330-5440 (I gave on the blog), and more importantly, the move is still not invalidated as long 4600 is holding. Hope I am able to complicate the things well for you people so that I can start explaining it :-)
I have discussed the positional view in stead of intra as I feel that we are very close to a pivotal place, where we can take positional views for higher gains than intra day trading.
Supports: 5050 is very crucial for the day. Below that further weak can bring 5035-5020. Below that 4970-4920 will decide the fate of the larger trend.
Resistances: 5115 is pivotal for the day on the upside. Above that one can play for 5135-5165/70, which is to be looked @ very cautiously.
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