NIFTY ANALYSIS -

Nifty Has made a High of 6038 - Will it be a temporary TOP??? last Month (CLICK HERE) from the SUPPORT of  5566 (CLICK HERE) Nifty has reached upto 6038 -  Month HEMA. The Charts show major resistance at this juncture. So Taking out 6040 levels at the Month End is the Key for further Upsides. Nifty Had been trading in a tight range for the past two months within Long term Support and Long term Resistances. Breakout on either side would lead to Huge Moves.

Weekly Charts show Highly overbought condition but yet to trigger a Sell. In Day Charts a Bearish Bat Pattern is Developing and few indicators exhibit negative divergence. Hourly Charts also exhibit -ve divergences.

DEVELOPMENT OF BEARISH BAT PATTERN
XA - 6229 - 5566
B - 6038 approx  70.7% - 6034.74
Projection for C:
38.2% - 5857
44.7% - 5827
50% - 5802
61.8% - 5746
78.6% - 5667
88.6% - 5619

5620 levels is the Long term Support as per the Monthly charts. Any Break below this would lead to more downsides and the Labelling would be changed as ABCD pattern.

SYNOPSIS: 6030-50 Must be taken out on EOD basis for further upsides. Channel Breakdown below 5900. Intial Supports at 50 DMA -5914. 100 DMA and 200 DMA likely to provide supports at 5850 levels. Break below 5850 would drag Nifty to 5650 levels - which is the Long term Support.