It was a great week for the bulls as nifty was in a short term bullish setup (still is) and almost reached all the Fibonacci numbers. The final Fibonacci number is placed at 5100-5110 and it has almost reached those levels. If one really trades a bounce i would have squared of my buying positions above 5030 levels and would square of my positions close to 5100 levels.As i said in the previous posts all the dips were met with huge buying interest.One should use any profit booking session to buy again for secondary rally . As i was telling in my previous posts in a rally there would three phases a sharp upmove , profit booking session and a secondary rally to form the top. Thus as of now we have seen only the extension of the primary rally and major profit booking session and secondary rallies are yet to follow. Thus in the shorter term 5200 will remain as the major hurdle to cross and by crossing this nifty would be able to regain the temporary bullish setup. One could see nifty forming double bottom at 4930 levels and rallied. Thus 4930-5150 would be the weekly range as of now.
(Read about world markets and Nifty from 2001-11 in previous posts)
Time Cycle levels.
If the up move continues Nifty is expected to hit 5170-80 levels on the 9th of December and on the downside there is a possibility of getting back to 4950 on the 13th of December. In a nutshell if nifty fails to reach 5170-80 levels on the 9th it is expected to touch 4950 by 13th of December.(Consider +,- 1 day for this forecast). In the longer term watch out for 20,21 December and first week of January close to 5th of January for a a major change in the trend)
