What next ?

Full moon and vote of confidence on central government are over. And in anticipation of central government’s continuance, Nifty closed today at 4240, above the Sudha Rishabham level, supported by large waves for the last four days. During this period Nifty had also gone down to 3790 on 16^th July. From 17^th onwards there is an interesting feature. Look at the figures below.

Date	Nifty Closing	Next day’s Agni level	Difference
17th July 2008	3947	3793	154
18th July 2008	4092	3862	230
21st July 2008	4160	4055	105
22nd July 2008	4240	4272	- 32

For any fresh buy, Nandi considers that the Agni level should be reasonably low when compared to Nifty spot. Further, a confirmation is also required ie. %k of slow stochastic chart should be below 20 (nearer to zero is that much better). Now %k is above 95 (refer the link http://niftylivechart.blogspot.com ). Nandi’s conclusion is that Nifty’s up move from here for the time being will be limited ie. around Chatusruti Rishabham level (4465). The above view can also be negated due to the sharp decline in crude oil prices and consequent surge in index. Let us see.