After testing our crucial short term level of 4750-4800 levels, Nifty bounced and it was written it could test 4990. But, it tested a high of 4951 and declined from that level. Since the level 4766 is crucial for short term, if Nifty fails to move below this level in another three trading sessions, then Nifty is likely to bounce from these levels to test 5000 in coming trading sessions.
On contrary, if Nifty declines below 4766, then Nifty is likely to see a sharp correction towards 4550 levels. Positional traders can go long in Nifty futures, if the low of 4758 is held, with a stop at 4750 for a target of 5000 in another 5 to 10 trading sessions. Instead, if Nifty fails to hold above 4750, then short Nifty with a stop at 4750 for a target of 4550 in another 5 trading sessions.
The present Bear Market rally from the low of 2250 made on october 2008 is likely to top out in another 20 trading sessions and it is likely to be followed by a decline towards 3900 in coming months.
