Nifty closed just above our upper range of 4880 and gave a decent bounce back from an oversold territory of 4720-50 levels. If we read today's move unlike the other bounce backs this one is quite relevant for a fresh up move because of several reasons.
1. Nifty took multiple supports at 4700 level and any move above 5030 confirms 4700 as a base.
2. The move was triggered by fresh buying than short covering rally and equity market volume reveals that fact.
3. Nifty just added more number of buyers when ever it touched 4700 zone and it accumulated buyers thrice within two weeks and all the bigger funds have already withdrawn huge amount of cash and the they could trigger fresh buying in many stocks.
If we look from the top of 5170 to 4720 ...nifty could touch an important Fibonacci number at 5000-5030 levels.Nifty traders should closely watch any dips to 4800 and the volume of nifty futures. It looks like any dip to 4800 would act as a buying point though a lot of fresh short positions have initiated at 4940 levels . Thus buying on dips and short covering above 4950 levels could lead Nifty to 5030 levels. One more closing above 4950 would take Nifty to a range of 4800 - 5170 range expect a top around 12 th of October.
(followed by weekly prediction for the coming week )
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