After a long wait of more than 5 years, finally the market have registered an all time high of 21321.53 by sensex but nifty is yet to break 6357. Both Sensex and Nifty were in correction mode for more than 2 years now, which finally seems to have ended this year. Hopefully now we are ready for the next move forward for a minimum target of Sensex 24434 and Nifty 7355, provided Sensex stays above 18827 and Nifty above 5648. The journey upwards will definitely be challenging for the bulls but more importantly the upwards journey seems to have begun at last. Sensex has completed a Bullish Saucer formation starting from November 2010 to October 2013, even as the Nifty is on the verge of completing this Bullish Pattern. The target is around 24434 for the Sensex and 7355 for the Nifty and on the higher side Sensex 26554 and Nifty 8000. The target is likely to be achieved in the next 18 months.
On a cautionary note, the bulls need to maintain and stay above Sensex 18519 and Nifty 5471 for the long term Uptrend to continue. In case the above levels are breached, then the long trend will be reversed and then the Sensex will move lower to the support zone around 15135 and Nifty 4531. The Muhurat trading session too saw indices adding minor gains. Nifty is trading near our target/resistance level of 6350-6360. One more push higher from current levels would position the momentum readings in overbought territory and hence fresh longs could be fraught with unfavourable risk reward ratio. Traders are advised to continue with their existing long positions and tighten their risk management part. The major support for Nifty is placed around 6200 and then 6070. The intraday supports in Nifty are placed around 6272 and 6235, whereas resistances are seen around 6360 and 6420.
On a cautionary note, the bulls need to maintain and stay above Sensex 18519 and Nifty 5471 for the long term Uptrend to continue. In case the above levels are breached, then the long trend will be reversed and then the Sensex will move lower to the support zone around 15135 and Nifty 4531. The Muhurat trading session too saw indices adding minor gains. Nifty is trading near our target/resistance level of 6350-6360. One more push higher from current levels would position the momentum readings in overbought territory and hence fresh longs could be fraught with unfavourable risk reward ratio. Traders are advised to continue with their existing long positions and tighten their risk management part. The major support for Nifty is placed around 6200 and then 6070. The intraday supports in Nifty are placed around 6272 and 6235, whereas resistances are seen around 6360 and 6420.
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