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Nifty spot closed at 4713 with heavy profit booking and all short term long positions winding up as short Christmas vacation is coming up. As indicated a chart of nifty daily from mid 2009, we can see volatility of nifty index. In 2011,
nifty show negative trend in the whole year and perform a range bound in a linear support and resistance (trend line) which is shown in figure. There was a bearish trap in February month which is circled area in chart. In our last movement, price line has faced a strong resistance of a short term trend line. Moreover, MACD (84.52) has faced a resistance of trend line in daily basis and it came down back in recent weeks. 2011 was the secondary trend which was negative. As far as primary trend is concerned, it is positive and nifty outlook is favorable for long term investment, in next 2 years, however in the short term the market is looking to continue in the correction phase with very strong long term support for nifty at 4336.
nifty show negative trend in the whole year and perform a range bound in a linear support and resistance (trend line) which is shown in figure. There was a bearish trap in February month which is circled area in chart. In our last movement, price line has faced a strong resistance of a short term trend line. Moreover, MACD (84.52) has faced a resistance of trend line in daily basis and it came down back in recent weeks. 2011 was the secondary trend which was negative. As far as primary trend is concerned, it is positive and nifty outlook is favorable for long term investment, in next 2 years, however in the short term the market is looking to continue in the correction phase with very strong long term support for nifty at 4336.
