Crucial Days For Stock Market Up Trend. End Of Major Up move is likely to an end.

Observation:

After my turning day 22^nd Jan on last trading day NIFTY recovered from intraday support zone area of 6038. Now trading below 6028 will lead to bulls offloading and chances of smart fall is on card.  

NIFTY closing: 6077: Trade direction: DOWN AND OVERBOUGHT SITUATION LIKLEY TO OBSERVE ANOTHER SELL OFF. NOW OUR RESISTANCE LVL IS 6120 AND ABOVE THAT NO TRADING.

Reversal: For daily: 6050 (for short term up trend), For weekly: 5985 and for monthly 5955. 

For intra day:

Buy Above 6095 SL 6043 TGT 6113, 6147 AND 6165 :

Sell Below 6040 SL 6095, 6043, 6010, 5992.

Observation: In the 30 min chart not attached. 5th of 5th also turned out to be an ending diagonal.

NIFTY gave a rising wedge breakdown (not closed below the support area of while line as shown in above chart) leading to an impulsive fall. There is good OI addition in 6100 strike CE & also unwinding in near strikes PE. This further strengthens 6100 as the resistance, at-least for the expiry.
Breadth was again dismal today (as it was for last few days). No sectoral rotation helped NIFTY today as all indices were in red.

So, I continue to feel that 6100-20 could be the top for next few sessions. Trade is now on short side with 6120 as stop loss. But in-case 6120 is taken out on closing basis; reverse the trade on long side with 6100 again as the stop loss.

The daily bar chart of Nifty touched a 2 year intra-day high of 6101 on Jan 22, ‘13 but it turned out to be a ‘reversal day’ (higher high, lower close). Not all ‘reversal days’ lead to corrections or trend reversals. A sharp rise in volumes on a ‘reversal day’ is usually an indication that a correction or trend reversal may follow.

Also in last 10 days working 4 times NIFTY showed panic selling and next day recovered. (see upside arrow in the chart). Also oscillator failed to reach its previous high in spite of NIFTY made new high of recent time. This is nothing but a shift of focus from Long to side way and weakness.

Close below 6028 will be an clear warning to exit from long. 

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