MARKET UPDATE

NIFTY have gone above (18,887) so we should get another reference high to work with. I allready discussed on this possiblity twice in last 15,days. As I repeatedly mentioned earlier things are likely to stay fine as long as (18,464) stays intact on spot ! This is an unfortunate thing that, dispite a second breakout attempt to move above (18,604) in last 21 months market still lacks that fire power to capitalise its move on upside. Let’s again see this time, looking at the internals that PATTERN is unlikely to change. The manner in which NIFTY have performed since early MAY has not been an appropriate move, specially for an OPTION buyer. MIDCAPS have done better but LARGECAPS have been lethargic. and there is a possiblity that such PRICE action on INDEX would continue as long as it manages to hold its supports. As I pointed out last time, there are only two options for this market, either it holds its supports and continue to do what it’s doing, or it breaks (18,464) and resume its incomplete decline, because without completing the decline this market can never get a CYCLE breakout. let’s see in last 10,years markets have only seen two CYCLE breakouts 1st was above (9,119) and another one was above (12,430) I believe we have to wait for 3rd one. In both prior instances market never tested its breakout zone for several years. PRICE action from here would be very intresting !