i had given vivek patil's views in last mail.he has given 2 options on breaking 14526, both were bearish.
first more bearish : we can correct severly and we can go below 13519 in coming 3 sessions.
second less bearish view : on correcting by more than 1412 points (14931-13519) from 15600 that is 15600-1412=14188 we can correct upto a level higher then 13519.
today we have corrected exactly upto 14188 and closed at 14265.
please keep his views in yr mind.
now my obervations:
we have broken upmoving trend line on log scale today,on linear scale it may get support around 14k tomorrow and very soon it will break in coming days.
we have corrected below 3/5/8/13/21 days moving avgs as per fibo next imp mov avg comes at 34 dma.
so now we can face resistance at 21 dma at 14637 and can get support at 34 dma at 13828 as on today.
i had discussed retracement lvls of fall from 11621-15600 few days back. since we have violated trend line so we shd consider now retracement lvls for full upmove from 8047 to 15600.
first imp support comes at 13817 at 23.6%(if considered from 7697 it comes 13734)
so i feel there are bright chances that we get corrected upto 13800 and we start a strong upmove as a pre budget rally.on break of 13700 this view will get invalidated. we are having rsi lvls around 51 so by the time we correct upto 13800 we can be highly over sold also.
only 5 trading days r left for f n o expiry of june series. that will also oncrease volatality.
