Nifty-Count

 

 

Nifty made a spectacular comeback after touching previous lows of Feb 2011 and broke through EMA shorterm  resistances and closed @ 5470.
Markets looked very weak in the previous week and was jolted with Mauritius treaty earlier this week.The has been huge foreign investment into India and approximately 35-40% of the foreign investment is from Mauritius,because of the beneficial tax provisions.Hence,the amendment to the current treaty reduces flows to India due to double taxation for the FII`s and market is absolutely right in reacting to the news in an appropriate way.
Technically,as mentioned in the last post,we do need to change the count accordingly mentioned in the chart.
Assuming wave 2 took a flat correction,with A@5177,B@5944 and C@5195 we are confident that wave 2 is completed with flat and  wave3 in process,until it breaks the lows of 5170-5190 range in near future.

Nifty For June 2nd week

In Continuation to last week patterns chart and as expected,the right shoulder is formed and we are in downmove after touching 5605 in Nifty which is right shoulder.
The important support for nifty comes at 5460-5480 range,failing to hold this range will lead nifty to 5320-5340,which is neckline support.
However,if Nifty manages to rebound from 5460-5480,ideally it will give a shot at 5800.

Global markets and cues:
Most of the Asian markets are in downtrend and DOW at a very important support level.
The economic reports are not favouring markets,either China`s slowdown,rise in interest rates in Russia and below average data from US.
Coming to domestic markets,its all negative.2G scam,expected interest rate hike and low GDP for the concluded qtr and not so interesting results from Ind Inc companies.

Indian markets fared well after low GDP numbers,expecting RBI would hike maximum 25basis points and not sacrifice much of the growth for inflation,low inflation numbers and clear monsoons with 12-14 percent above normal are favouring bulls.

Will see, how markets shape for next couple of weeks and adjust the strategy accordingly at this important juncture.