Analysis for Aug 9

Nifty has closed below the pivots, Lema's and 5ema's. The entire picture looks very bleak as the Global markets are plunging!! All supports are being broken with Huge gapdowns and today also seems to e one of the days!!

Yesterday's support at 5050 was maintained and a bounce back also was seen near to 5200 levels!! But all rises are being met with heavy selling!!

Today's support level is 4930 -4960-4980 based on the trendline support.. Holding these levels is very very important in Long term point of view!! Break of these levels would take Nifty to 4750-4800 levels!!

Continuation of the Harmonic Pattern chart:
http://tradeessentials.blogspot.com/2011/07/development-of-bullish-pattern-within.html

As per the Harmonic study, the Bullish pattern Gets completed at the point D @ 4960 which is 361.8% of BC. As per Crab pattern this is the largest extension and a Potential Reversal Zone. A break below this would call for a restudy of the charts.

A bounce back upto 38.2% retracement of the downmove from 5702-5947 at 5243 would be on cards if the support of 4960 is held.

Action plan for today:

Book out shorts at 4960-4980-5000 levels.
Attempt Long with a SL at 4950 on Hr closing basis.