13 October 2010

technical view :NIFTY Marching towards all-time high

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 Nifty today had a breakout from the consolidation band
of 6000 to 6222 and closed the day at the 32-month
high at 6233.
 Now the index would target 6289, which was the alltime
closing high for Nifty, and then 6357, which was
the all-time intra-day high.
 On the downside, the index would find strong support
at 6135, which is the 10DMA.
 After one week of consolidation the momentum
oscillators have again risen to stretched levels but
against liquidity-driven bull market, such stretched levels
can be ignored for a couple of weeks.
 Therefore in the coming days we expect the index to
breach the new all-time high and target 6450, which is
the upper end of the channel.

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