#130 Nifty Update: EK THA BEAR"...This time he fights for His love (Bull)

So u all must be waiting for the Salman's "Ek tha Tiger", bt traders just watched today "Ek tha Bear". We still dont know what the story gonna be of "EK tha Tiger" but its gonna be love story m sure. We can predict the love story of Bears ♥ Bulls. Today bear sacrificed herself for bulls and we show Bull gaining control above 5330 which was the strong resistance level 5 SMA. Bull equally loves bears so we show range bound movement between the 2 at 5307-5330 levels. Still we cannot confirm the long term trend as both are strong bounded to each other. They need their parents i.e., fundamental or political reasons to seperate them and get the confirmed long term move on either side. Reading the charts on daily basis we are in the strong upward channel and NIFTY exactly bounced back from lower bottom channel today at 5309 level. All the indicators were at the mid-way until yesterday bt they slightly pointed themselves to the upside direction today on back of positive europe market openings. Globally, Fundamentals are getting more weaker. "Rio Tinto" one of the leading mining company from australia posted 34% drop in balance sheet for 1st half as it witnessed 22% drop in demand for its material from china. Now this is what i call a sign of weakness. China was believed to be stable last year as its industry was producing bt nw we may see downfall as now its storage capacity has also been utilised as no demand of their products worldwide. Even "SHARP" which was the leading manufacturers of LCD in Japan has seen 50% drop in sales on YoY basis. US has seen a increase in employment but an article suggested that Obama has tripled to govt hiring which may have infused numbers. Analyst are in view tht Europe will be back in growth after 2014 as it was in pre-fall dwn times. But 2 good news from asia 1) Indonesia grew at 6.4% for 1st half. It is the leading economy is south east 2) Japan airways is planning to re-list it shares and that wld be the biggest issue in asia this yr with issue size of $2-3billion. So we are seeing sme recoveries globally bt developed countries are gtting weaker day by day. So long term picture nt clear on global side.

Technically speaking nifty has a gap downside 5260-5216 but all the indicators and breakout today suggest upside move. NIFTY has closed above all the short term and long term moving averages after long time. Tomorrows opening would be of much relevance. We may see markets cruising to 5450 levels above which we may see long bull run. So strategy is to be long on NIFTY with tgts of 5380/5420/5450 stop loss 5310.