Saturday, September 29, 2012

Outlook For October 2012

Hope all of you enjoyed the swing from 22nd September [+/-1 day] as had been told.

Now Nifty has struggled twice in the 5720 region [a few points away from the logical target as had been forecasted earlier] Interestingly the volumes have spiked up well in the September rally which go well beyond the short-covering rally. Fundamentally, the Rollar has corrected in favor of markets.

So how far can this upside go? As usual, I will just put the EOD numbers for the same

1 close above 5740 with current volumes is enough to take Nifty to 5850-5880 levels
1 close above 5944 can change the game drastically in favor of bulls [higher the prices, faster the acceleration as well]

The first outcome is highly probable but the second outcome may not happen IMHO in 2012

On downside, for the shorter term, 2 consecutive closes below 5690 will probably help prices to plug the gaps created in Sep '12 and allow for one more bounce to the upside from the 5408-5532 range to the 5580-5655 range.

The so-called secular bull market will gain steam when the Rollar posts 2 consecutive closes below 48.25 IMHO

October is likely to be volatile with the critical dates being 11th Oct '12 and 22nd Oct '12 [+/- 1 day]
Have a profitable week and the following chart should help in figuring out the roadmap for the next series.


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