After a very long time have the bulls even felt relatively close to the market or even that they exist. NIFTY closed at 4919 up 171.8 points or 3.62%. The markets have signaled a RSI & CCI buy signals. It is very obvious that the markets are highly oversold and that fresh buying is happening across the board. The Nifty showed a pattern similar to the Morning Star. A retracement to a level of 5150 is very much in the cards. Anti-corruption campaigner and India's white knight, Anna Hazare and the hundreds of thousands of people who took to the streets to support his cause in a standoff that lasted nearly two weeks have won an epic battle over the government. Benny boy has assured the public that more of "their own money" shall be made available to themselves to create new jobs and support the already broken backbone of the US economy. Markets cheered !!
Anyways, HDFC has been tested for time now and we successfully could say today that this is one of the best banks out there which has stood the test of time for itself because of the outstanding job done by the board. We can see a head and shoulder pattern developing on the charts with 621 as the neckline. The attainable targets for a short term outlook stands at 688 while the pattern unfolds. Intraday longs can be hit @636 for targets of 650 - 660. Working with a tight stoploss is highly recommended in such volatile markets.
Bank Nifty is also starting to show recovery signs. The markets are oversold but the people should wait n carefully watch the 3 intersecting points to see if the trend line is breached to get a proper idea of what lies ahead. Stochastics , RSI & CCI have generated BUY signals.
But overall the index still looks very weak and unpromising.
Watch the markets very carefully at 5150 levels as we think that one more dip is on its way based on what indicators are telling us.
TIMESNIFTY AUG 29' 2011.
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