Pre-Open Market Outlook(04-02-2011)
Following lines were told yesterday after last hour sharp fall following A.Raja arrest one day before:-
"Reasons for next bullish market view have been posted in previous outlooks and expecting rally in the coming weeks after sustaining above 5460."
Technically nothing was left to hope for bull markets except Wave-3 trend line(5460) and I non stop continuously told for the expectations of its survival. It was broken down but Nifty could not sustain below it and recovered nicely yesterday.
Technical requirements for next rally are as follows:-
1- Sustaining above 5460.
2- Sustaining above 200-day EMA(5643).
3- Crossing next resistance range(5680-5800)
As I have already told many times that Jan 2011 sharp down moves are only result of non stop big negative news. Last month begun with strong Bullish outlook and finished with most Bearish notes. Last month sharp falls are only on negative news based without much distribution patterns therefore resistances at higher levels are not much stronger. Let rally begun then sharp upmoves will be seen.
'ABC' correction was on for the last 4 months and its 'c' wave has been finished in last 3 sessions move near 5460. Fresh rally expected after 4 months correction completion.
Positive closing expected today.
(Lalit Kumar Dhingra)
