TWO Good….Too Good.
The first. See the daily EOD Spot Nifty chart.
The first thing one could notice that for last two sessions, the candles have longer lower wicks. It generally means that there are attempts to take the index down, but it is unable to sustain at those lower levels, and hence recovers. A kind of a Bullish signal.
But it needs to be continued further more.
The second being the US $ -INR conversion rate. The US $ has come near 48 Rupee value.
No. It is NOT the smart money moving in. It has to be the institutional investors. The smart money may enter below 46 rupees to take advantage of 44-46 range, and get the US $ cheaper than the Institutional Investors.
And whenever it will be the time to move out that the FIIs would have done their business with the stock markets and would suitably pull out that shall start the up move in this rate. The smart money shall get pulled out later, and yet again, get a better rate than the FIIs.
From the daily Nifty chart, we also see some more interesting things. Such as –
1. Today’s candle has taken support from the red coloured 10 days EMA line. So, it is likely to stay above that line for the next few days.
2. The Indigo coloured BBs have started widening. So, now, the daily candle may start moving upwards to catch-up with the KBs, until the BBs move beyond the KBs.
In short, we may see a massive up move in next few days.
However……..!
Now, let’s see the Spot Nifty EOD Weekly Chart.
For last eight weeks, the candles have been not only range bound, but the range went on diminishing till the last week.
Although the current week’s candle does NOT have a long lower wick, it is a Green candle, that has moved up considerably for the first time in last four weeks.
Considering that the close for the month of Oct 2008 being 2885.6 and today’s candle having closed above it, one major hurdle appears to have been cleared.
The BBs have not contracted sufficiently. But the weekly candle is slowly moving towards the 10 Week EMA Red line, though is currently below it.
All those who have remained long today [for a change] may get benefited next week, irrespective of whether US market closed today in the Green or in Red. Incidentally, the DJ had been making Lower Top Lowe Bottom every day last week. But a week previous to that, everyday it was Higher Top Higher Bottom. A Triangle formation is likely on DJ.
I also feel, that the process of detachment from the US market appears to have commenced… may be minutely and on a lower key, but it may prove beneficial to the Indian markets.
This is my opinion and my views, and I could be wrong, and may please be corrected
Cheers!
SS
. He use to be busy on week days but writes on week end. And he is the master of all, I must say. When market was trading at 5300 he was the 1st to predict 3200 
