June - Rangebound tranding

test its 200 days of EMA at 5650.37. But once we reach this level, it is good to exit from your positions as upside would be limited.

Only if you are day/short term trader, you can take a long position with a tight stop loss orders. Once Nifty reaches 200 days EMA of 5650, then better to exit from the market. In the month of june, we will see a range bound trading between 21 days, 50 days and 200 days of EMA. (roughly 150 points between 5500 and 5650).

If you are a long term risky player in the market, then you can initiate short position and accumulate short position gradually in the coming weeks. You can not expect return in the short term.

If you are a long term conservative investors, then you have to switch your investment strategy and move on the Fixed Income Securities - Govt. Bonds, Fixed Deposit, etc.

Nifty is good to STRONG BUY for conservative investors only it encounters a deep correction which I expect it to go all the way down to 4800 which was set on Feb and May 2010.

Technical Indicators

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10 days EMA: 5469.48
21 days EMA: 5508.59
50 days EMA: 5575.33
200 days EMA: 5650.37

Next Resistance Levels:

resistence level at: 5650.37 - 200 days EMA

strong resistance level at: 6,181.00 - Double Top (Around 350 points up from today's close) set on Jan 4, 2011 strong resistance level at: 6,338.50 - Double Top (Around 500 points up from today's close) set on Nov 5, 2010.

Next Support Levels:

strong support level at 5402.40 set on Aug 31 2010minor support level at 5225.80 set on Feb 10, 2011
strong support level at 4806.75 set on May 25, 2010
strong support level at 4718.00 set on Feb 05, 2010

updated by www.softwareandfinance.com

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