The action of the market speaks for itself about whatever predictions we made yesterday. As we expected, market opened weak and fell unidirectionally towards and closer to the mentioned support of 4069 where it took support and has made its day low at 4077. One interesting point to be noted was that, during the bounce back from the day’s low nifty tried several times to break past the level of 4129 but finally failed only to fall back towards the psychological support level of 4100. Technically and interestingly in the intraday chart, 4129 happens to be a strong Fibonacci resistance level.
Yesterday also “IT” stocks continued to get hammered and IT(s) index was down by 2.8%. Towards the closing of the market, nifty showed some strength by bouncing sharply from the day’s support level which may be part of expiry day drama or a genuine strength which will be validated in a couple of day’s session.
US market closed strong and Asian markets opened and trading weak. We have see to which global cue nifty will be responding for the day. My feeling is that Asian market cue may have more impact on our market than that of US’s as its moves are deceptive sometimes. Everyone is keen and interested to see how the October series will be in this bearish environment.
By closing above 4100 nifty has opened some hope among traders for a bounce back. On the upper side, nifty may find resistance near 4163, 4190 or 4215 levels. Similarly on the lower side nifty may find support around 4067 or 4051 levels. In the daily chart nifty shows some weakness whereas in weekly chart it shows signs of bottoming out. We have to wait for some more sessions to see in which direction market is going to pan out.
SUN OUTAGE: Between 24th Sep.’08 to 8th Oct’08 market will remain closed between 11 25 hrs to 12 10 hrs due to sun outage and market will close at 16 15 hrs instead of 15 30 hrs.
Happy Trading !
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