The central banks of Europe, the U.S., Britain, Canada, Japan and Switzerland eased banks’ access to dollars by reducing their borrowing rates. They were responding to fears that a European country will default, touching off a credit crunch similar to what followed the 2008 collapse of Lehman Brothers.

Borrowing rates for European nations have skyrocketed on concerns that the European debt crisis has engulfed nations such as Italy which are too big to bail out. Borrowing rates for Italy, Spain and others have soared.

The central banks’ action takes some pressure off the financial system, which has signaled in recent days that banks are losing faith in their trading partners. Banks need to trust each other to maintain healthy flows of credit and keep the system working.

Global Market are rallying and Nifty as per SGX (http://sgxrtchart.blogspot.com/)is trading at 5002.

Nifty Daily

As per Daily chart we discussed yesterday close above 4833 is very important level for December month.Yesterday Nifty closed above 4832 just a border line.

Nifty closed above 4800 for 3 days in a row which shows Buying coming on lower side and with sentiments bearish all around make its ripe condition for rally.

As I always say Charts discounts everything News are discounted by charts and same is proving true today also as Nifty closed above 4800 and 4833 it gave a very bullish signal.

Nifty 20 and 50 SMA

 

 

 

Mother of all Resistance is 5022 Close above 5022 will make Nifty bullish in short term

Nifty Fibonacci Level

As per Fibo Levels 50% retracement 5018 comes at 4639 to 5400 which proves to next resistance resistance.

61.8%  resistance comes at  5107

Should we Short today?

Short near 5004-22 Range for target of 4967 but make it intraday only