On daily basis spot nifty has given a double top confirmation (5750) from one angle and from another angle moving within a secondary bearish channel.One suggests fast downward price movement and other suggest lower low and lower hi. From both angles can expect lower prices.
If we see last few days movement after giving the confirmation settling below 5750 on 14th Jan’2011 unable to attract fall rather holds the area and moved within a range of 5625-5750. On 25th Jan broke resistance of 5750, hits nearer resistance of 5800, but unable to sustain and moved down and closed on sup of 5680 which indicates weakness.
Now what can expect, sup of 5580/85 (declining lower line of channel, ‘ll be lower with time) need to break instantly for a sharply downward move otherwise to be within a downward channel, bit sideways within a channel forming lower highs and lower lows, either way 5000/5100 seems achievable.
This downward price move is likely a balancing of value or cooling overpriced stocks in global scenario.
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