NIFTY Spot can come up to 4500..........13 Aug 2011

NIFTY SPOT TREND FROM 2002 TO 2011

After analyzing the above chart it is clear that NIFTY Spot touched second time high in past 11 years. First time NIFTY Spot touched high @ 6274.30 on 04 Jan 2008 and second time touched high @ 6281.80 on 04 Nov 2010. From 04 Nov 2010 to 09 Aug 2011 NIFTY Spot became down continuously, every bounce back from down side made new deep low on downside on continuously basis. Means to say from Jan 2010 to 04 Nov 2010, NIFTY Spot increased +1049.60 points from 5232.2 on 04 Jan 2010 to 6281.80 on 04 Nov 2010. In 2011 NIFTY Spot lost -831.75 Points from 5904.60 on 07 Jan 2011 to 5072.85 on 09 Aug 2011. 

From 04 Nov 2010 to 31 Dec 2010 NIFTY Spot also lost -147 points from 6281.80 - 6134.50.

Means to say :- 

From Jan 2010 to Nov 2010 - NIFTY Spot increased +1049.60 Points

From Nov 2010 to Dec 2010 - NIFTY Spot lost -147 Points

From Jan 2011 to Aug 2011 - NIFTY Spot lost -831.75 Points.

Means whatever the NIFTY Spot had gained in 11 months (from Jan 2010 to Dec 2010) lost more than 90% of that gains in 11 months very quickly. It is showing that again NIFTY Spot has entered into recession session which is expecting to continue next couple of months also.

So be alert a big down fall or lower circuit is expected in the coming sessions....

As per FIIs concerns from Jan 2011 to Aug 2011 FIIs overall net short position in index futures including NIFTY Futures around 2400 cr. @ 5431.25.

So finally NIFTY Spot is not looking above 5450 – 5500 for coming couple of months.

As for global factor America & Euro Nations are facing big financial crisis problem. There are total 1731 registered FIIs in India from 47 countries. 575 FIIs from USA and 344 FIIs from 17^th European countries. FIIs from 5 European countries out of FIIs from 17^th European countries namely France, Belgium, Spain Italy and Germany are facing too much big financial crisis problem in comparison tom others. So some bad news can come from these countries in coming days. So if bad news comes from these countries or from Euro Nations, so FIIs from these countries in India can panic the market and pressure on other countries FIIs from rest of world to redeem their investments from Indian Market.

So All the above technical & fundamental indicators clearly show that again our market has hijack by bearers again likely in 2008.

So carefully trade in the market with strict Stop Losses. Don’t hold the position on overnight basis. Book profit if getting and last but not least be alert………

Finally for NIFTY Spot can come up to 4500 and will take strong support between 4300 - 4400 on last 10 years basis.