Nifty Post Market review, 18 January 2011

Today Nifty took support around 5670 and bounced back a litttle towards 5775. Since Nifty has closed above the intraday crucial level and 5700, the next crucial level to watch is 5775. If, tomorrow this level is broken in the upside, Nifty is likely to test 5820-5900 range.

Now Nifty has to move above 5900 in the upside for a short term rally. Failure of Nifty to move above this level would push the market towards 5550 levels. So for tomorrow the level to watch is 5775.

Nifty is nearing the crucial support of 5550, 18 January 2011

I have been mentioning 5550, almost for the past one year. Earlier in 2010, it struggled to move past that level. Nifty retraced two times before testing that level. On the third attempt on september 2010 it moved past that crucial level.

As it failed to move above its all time high, it is being expected to test the next crucial level of 5550. Now Nifty is in the striking distance of 5550. Nifty is likely to bounce from this levels atleast for the short term. If 5550 is broken without a pullback from here, the fall is likely to be very steep.