Ads 468x60px



NIFTY weekly chart till 11.40 IST 29 sep2010 .)

Now a days am getting mails asking when will nifty correct.Most people feals like market is over heated,valuations not justified with curent price levels and so on.So many people sitting with low cost PUT of this and next series contracts.Before tell all about correction in NIFTY ,i want take all to basis of Technical analysis.

Field of Technical Analysis based om three assumptions.
1. The Market discounts everything.
2. Price moves in trends.
3. History tends to repeat itself.

A major criticism of technical analysis is that it only considers price movements,ignoring the fundamental factors of the company.But we technical analyst assumes that at any given time,a stock's price reflects everything that has or could affect the company.So current prices of all major stocks in NIFTY and SENSEX reflects everything .

Yes,its a liquidity driven rally ,but technical analyst of market says one more thing,NO ONE CAN CHANGE LONG TERM TREND OF MARKET ,BUT CAN MANIPULATE WITH EXCESS LIQUIDITY IN SHORT TERM.

Now about Nifty correcting, in daily chart RSI showing divergence which is a bearish sign ,but market looks a trigger for correction,contract expiry and domestic news flows will take market to 5800 levels in coming weeks.