Nifty(5003↑85.70): Nifty pull back remain intact for second trading session. Today, Nifty decisively crossed 4947, the first confirmation level, the second confirmation level is placed at 5029. The Nifty move above 5029 would confirm the completion of wave-e of an “Expanding Triangle” pattern and the current upward move would be a pull back as against the larger degree fall from 5399 to 4786.
The “Expanding Triangle” pattern indicates pull back would be slow and time consuming, price wise Nifty would rise up to 38.2%-50%-61.8% retracement levels of the “Expanding Triangle” and time wise the Nifty pull back could remain intact between 38.2% and 100% of the time taken by the “Expanding Triangle”.
That is the Nifty pull back could move higher anywhere between 5010-5079-5149 ; time-wise, the pull back would remain intact between 9 June and 2 July ’10 (). On completion of the pullback movement, the Sensex would once again resume its downward trend to create new lows.
Strategy would be to restrict trades to stock specific during the pull back avoid over leverage.
Banking stocks are positive Syndicate Bank, Uco Bank, Dena Bank Infosys and L&T are positive.
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