Is it time to Buy......No Not at all....

The Nifty has made a Head & Shoulder pattern on the Weekly chart and the break down, as can be seen from the intersection of the left shoulder & neckline has been severe and upto 4720, but the Nifty has made a U turn from there and now the Nifty is moving Northwards and people are talking of Nifty reaching again to 5500-5600 levels.

As mentioned in the earlier post, as 4770 is a 50% retracement level for the Nifty for it's rise from 2500 odd levels to 6350 levels, however that had been broken on a closing basis and Nifty closed at 4747, so the sanctity of the 4770 levels has been breached now, also the Head & Shoulder pattern on the Nifty charts shows that the target for Nifty is 4200 and the time target would be till Dec last week.

The Nifty right now will face resistance at multiple levels first at 5110 (38.2%) and then at 5232 (50%), now incidentally 5232 is the level where nifty has made a Gap down opening as well, so this 5232 level will act as a strong resistance.

Therefore one should right now wait for the Nifty to test the 5232 levels and if the Nifty is able to sustain above this level then one can go Buy, however the chances are more that Nifty will face resistance at these levels.

In Nutshell....the advise would be wait for 5232 levels and if Nifty faces resistance here go short on Nifty with a minimum target of 4300 till December.