Nifty update for 5th October 2011

As our previous weekly update showed it was a continuous fall in the index and it retested 4720-4750 zone on 4th of October.It would be interesting to see whether Nifty could hold these levels. If we observe carefully we could see that there are multiple support zones lying at 4600-4700 levels and the weekly charts from 2008-2009 lows will show you that 4300-4400 would be an important Fibonacci number.All these levels would suggest you below 4700 there would be one more round of short selling could be seen and that could be the selling climax. As of now it has retested the previous low of 4720 zone and bounced back, but at a major bottom nifty should be selling at a discount of at least 20-30 points and that should be the selling climax.The more late it come below 4700 the more deeper would be the cut on the downside. 4880-4650 could be range to watch out for
(See the weekly prediction from 3-7 October before reading any daily posts).