Nifty update for 24th November 2011

Finally it broke 4720 levels and registered a new low around 4630 where an important Fibonacci number is placed. The low was touched with huge volumes and nifty is expected to head lower with some sharp bounce backs of 80-100 points. The next logical target for Nifty would be 4300-4400 but i would advice investors to start adding stocks in small quantities where you could find some cheaply valued stocks. As Nifty has breached its 2 years support levels it should be considered with more caution.IT sector has not participated in the downtrend as of now and there would be good correction coming in IT too.There would be bounce backs for nifty to come down further as the downward channel tells you nifty would be at 4400-4500 levels and Fibonacci is telling you 4300 levels if you see the weekly charts from 2000 till now.The picture is clear now for an investor , he should be a buyer at any levels from 4300-4500.For an investor there is no point in waiting for a bottom to be formed. The bottom formation process would take at least a month or two, it forms a bottom , would give you a sharp up move and it tests it again to confirm the bottom etc. For traders these are important turning points as these are major trend defining moves.Dollar index is still in an upmove and it is not showing the strength to move up. Any upside 4840-4860 would be the upside cap.