Due to Diwali there will be no updates till end of this week.
Happy Trading !
Monday, October 27, 2008
Friday, October 24, 2008
24 Oct'08: Ripe For a Pull Back
As we have mentioned nifty made a new low. Once again yesterday was a very volatile day. Nifty opened with a huge gap down of around 150 points and recovered to some extent to test the 3000 mark several times. In the second half of the session nifty managed to break 3000 mark decisively and gave a very strong pull back which took nifty in the positive region and made the day’s high at 3085. But nifty short lived in the positive region and made a nose dive towards the day’s low after making a double top pattern. Nifty closed below 3000 level in a disappointed manner at 2943 which also damaged the sentiment among the investors.
The US market saw a very volatile session and closed with a mixed note. DOW and S&P500 are up by 2% and 1.26% respectively. Asian markets also opened and trading weak with a negative bias. Nifty is expected to open flat to mild negative.
For today on the lower side nifty may find support near 2879, 2865 or 2815 levels. Similarly on the upper side resistance exists near 2982 or 3046 levels. As it was mentioned in the earlier note that the support level of 2865 which is also the weekly support level may resist nifty’s downfall. As nifty is in the oversold region for a very long time, in any time it can give a very strong pull back. We have to wait and watch whether nifty will manage to close above last week closing level of 3074.
Happy Trading !
The US market saw a very volatile session and closed with a mixed note. DOW and S&P500 are up by 2% and 1.26% respectively. Asian markets also opened and trading weak with a negative bias. Nifty is expected to open flat to mild negative.
For today on the lower side nifty may find support near 2879, 2865 or 2815 levels. Similarly on the upper side resistance exists near 2982 or 3046 levels. As it was mentioned in the earlier note that the support level of 2865 which is also the weekly support level may resist nifty’s downfall. As nifty is in the oversold region for a very long time, in any time it can give a very strong pull back. We have to wait and watch whether nifty will manage to close above last week closing level of 3074.
Happy Trading !
Thursday, October 23, 2008
23 Oct'08: Ready For Another New Low !
As expected yesterday nifty opened weak with a 100 points gap down. During the day nifty traded very weak, every intra day pull backs got sold off like a hot cake. Nifty went very close to the year low of 3047 and made day’s low at 3052. During the downward journey during the day nifty has shattered all the important support levels, but it closed exactly at our mentioned support level of 3065. Whatever gain nifty made on Wednesday was given back yesterday. Failure to hold 3200 level is definitely is not a good sign.
The US market broke all the major support levels yesterday and closed with a very negative note with their indices down by about 4-6% down. Asian markets also opened and trading very weak. Nifty is expected to open negative. Its almost sure that nifty is going to make new low in the opening itself. Breaking the 3000 level will definitely damage the sentiment.
For today on the lower side nifty may find support near 2999, 2934 or 2865 levels. Similarly on the upper side resistance exists near 3183 or 3256 levels. In any case the mentioned support level of 2865 which is also the weekly support level should contain nifty’s downfall. As nifty is in the oversold region for a very long time, in any time it can give a very strong pull back.
Happy Trading !
The US market broke all the major support levels yesterday and closed with a very negative note with their indices down by about 4-6% down. Asian markets also opened and trading very weak. Nifty is expected to open negative. Its almost sure that nifty is going to make new low in the opening itself. Breaking the 3000 level will definitely damage the sentiment.
For today on the lower side nifty may find support near 2999, 2934 or 2865 levels. Similarly on the upper side resistance exists near 3183 or 3256 levels. In any case the mentioned support level of 2865 which is also the weekly support level should contain nifty’s downfall. As nifty is in the oversold region for a very long time, in any time it can give a very strong pull back.
Happy Trading !
Wednesday, October 22, 2008
22 Oct'08: High Volatility
As we were expecting, yesterday nifty opened gap up and showed some genuine pull back in line what we had mentioned in the last update. Due to high volatility the intraday chart was very choppy. During the day nifty moved up with a positive bias and closed near the day’s high. The weekly pivot point of 3256 offered a strong resistance for nifty to move further on the upside. There was strong pull back recorded in important nifty stocks like Reliance Industries, etc. which is a positive sign for the market.
The US market opened weak closed with a very negative note. US market indices also recorded a volatile, choppy trade yesterday and most of damage was done in the last hour of trading to close around 2-4% down. Asian markets also opened and trading with a negative bias. Nifty is expected to open flat to mild negative.
For today on the lower side nifty may find support near 3202, 3189, 3149 or 3065 levels. Similarly on the upper side resistance exists near 3287, 3320 or 3347 levels. It is important for nifty to close above 3200 level to keep the upward momentum intact. Nifty is expected to experience a strong resistance near 3330-40 levels and breaching of same may propel nifty to higher levels.
Happy Trading !
The US market opened weak closed with a very negative note. US market indices also recorded a volatile, choppy trade yesterday and most of damage was done in the last hour of trading to close around 2-4% down. Asian markets also opened and trading with a negative bias. Nifty is expected to open flat to mild negative.
For today on the lower side nifty may find support near 3202, 3189, 3149 or 3065 levels. Similarly on the upper side resistance exists near 3287, 3320 or 3347 levels. It is important for nifty to close above 3200 level to keep the upward momentum intact. Nifty is expected to experience a strong resistance near 3330-40 levels and breaching of same may propel nifty to higher levels.
Happy Trading !
Tuesday, October 21, 2008
21 Oct'08: Technical Bounce Back
The 3000 level in nifty is still preserved. Yesterday in line with our expectation nifty opened with a gap up. Though the intraday trend was very choppy nifty stayed within the mentioned support and resistance levels. On the higher side nifty went closed to our resistance level of 3258 and made the day’s high at 3238 from where it fell very sharply.
The US market closed with a very positive note after the Federal Reserve chairman’s support for further aid to support the economy. Asian markets also opened and trading with a positive bias. Nifty is expected to open positive. One more gap up opening for today is definitely there in the cards.
As indicated in the last notes the nifty daily chart has entered into the oversold region and also the weekly chart is in deep oversold region, possibility of a strong pull back is bright. For today on the lower side nifty may find support near 3042 or 2961 levels. Similarly on the upper side resistance exists near 3221, 3276 or 3319levels.
Happy Trading !
The US market closed with a very positive note after the Federal Reserve chairman’s support for further aid to support the economy. Asian markets also opened and trading with a positive bias. Nifty is expected to open positive. One more gap up opening for today is definitely there in the cards.
As indicated in the last notes the nifty daily chart has entered into the oversold region and also the weekly chart is in deep oversold region, possibility of a strong pull back is bright. For today on the lower side nifty may find support near 3042 or 2961 levels. Similarly on the upper side resistance exists near 3221, 3276 or 3319levels.
Happy Trading !
Monday, October 20, 2008
20 Oct'08: Will 3000 Hold?
On Friday as per our expectation nifty opened with a mild positive note which was pulled back in no time towards its previous day closing level. During the first 15 minutes nifty made the day’s high at 3336 and has not breached our resistance level of 3365. Nifty made a sideways movement till the first half of the session which is followed by a unidirectional move, which was nothing but downward movement and there was no turning back to close at the day’s low once again. Nifty closed at 3046 which is almost at the mentioned weekly support level of 3045.
The US market on Friday after a volatile intraday closed mildly negative to confirm its non-genuinity of the Thursday’s last hour strong pull back which resulted in 4-5% gain. Asian markets have opened and trading with a positive bias. Nifty is expected to open flat to mild positive. Even a gap up opening of 50-100 points cannot be ruled out.
As our market is almost oversold some intraday bounce back may be expected. In the daily chart nifty is entering into the oversold region and same may be over in couple of sessions after which nifty may take support and give a pull back. For today on the lower side nifty may find support near 2969 or 2921 levels. Similarly on the upper side resistance exists near 3152, 3189 or 3258 levels. Also 3000 level in nifty may provide some psychological support. The weekly support exists at 2865 & 2655. If ongoing bear run has to be similar to that of 2000-2002 bear run nifty has to fall till 2550 to take support and followed by a pull back, let us wait and watch.
Happy Trading !
The US market on Friday after a volatile intraday closed mildly negative to confirm its non-genuinity of the Thursday’s last hour strong pull back which resulted in 4-5% gain. Asian markets have opened and trading with a positive bias. Nifty is expected to open flat to mild positive. Even a gap up opening of 50-100 points cannot be ruled out.
As our market is almost oversold some intraday bounce back may be expected. In the daily chart nifty is entering into the oversold region and same may be over in couple of sessions after which nifty may take support and give a pull back. For today on the lower side nifty may find support near 2969 or 2921 levels. Similarly on the upper side resistance exists near 3152, 3189 or 3258 levels. Also 3000 level in nifty may provide some psychological support. The weekly support exists at 2865 & 2655. If ongoing bear run has to be similar to that of 2000-2002 bear run nifty has to fall till 2550 to take support and followed by a pull back, let us wait and watch.
Happy Trading !
Friday, October 17, 2008
17 Oct'08: New 2008 Low
As per our yesterday’s notes heading, the first half session was dominated by panic set in among the traders which had pulled the market to the new 2008 low of 3100. In the second half session traders are taken by surprise by the massive recovery which had pulled the nifty very close to its day before yesterday’s closing level. In the last 30 minutes there was a sharp decline of almost 70-80 points and whether it has any meaning can be confirmed by today’s market action.
The US market registered a strong rally in the last hour of the trading to close around 4-5% up though there was intraday volatility. The genuinity of the last hour pull back in US market will be tested and confirmed in couple of sessions in days to come. Asian markets have opened and trading mixed. Nifty is also expected to open flat to mild positive.
On the lower side nifty may find support near 3199 or 3137 levels. Similarly on the upper side resistance exists near 3365 or 3438 levels. The weekly support exists at 3045. For any significant change in trend direction, nifty has to close above 3462.
Happy Trading !
The US market registered a strong rally in the last hour of the trading to close around 4-5% up though there was intraday volatility. The genuinity of the last hour pull back in US market will be tested and confirmed in couple of sessions in days to come. Asian markets have opened and trading mixed. Nifty is also expected to open flat to mild positive.
On the lower side nifty may find support near 3199 or 3137 levels. Similarly on the upper side resistance exists near 3365 or 3438 levels. The weekly support exists at 3045. For any significant change in trend direction, nifty has to close above 3462.
Happy Trading !
Thursday, October 16, 2008
16 Oct'08: Panic Again
In continuation with day before yesterday’s decline, yesterday also market opened weak with a gap down as we had expected. After the gap down opening there was no looking back and the market kept on declining to close at the lowest point of the day once again. Traders had utilized the two days relief rally to liquidate all their long positions to book profit. The trend reversal pattern had been confirmed by the “Inverted Hammer” which formed day before yesterday and same been mentioned in our yesterday’s note.
As we mentioned in the last notes it is confirmed that the celebrations are over in US market. Once again panic set in US market after the bad economic data was out with 7-9% down in most of its indices. US market Asian markets has not failed to influence the Asian markets which have opened and trading very weak with their indices down by 6-10%. In line with the global markets nifty is also expected to open weak. Don’t be surprised to see a 100-150 points Gap down opening in nifty.
On the lower side nifty may find support near 3289, 3240 or 3199 levels. Similarly on the upper side resistance exists near 3388 or 3424 levels. In worst case nifty is not expected to breach 2997. In case of panic and emotion based trading technical support and resistance has very little importance.
Happy Trading !
As we mentioned in the last notes it is confirmed that the celebrations are over in US market. Once again panic set in US market after the bad economic data was out with 7-9% down in most of its indices. US market Asian markets has not failed to influence the Asian markets which have opened and trading very weak with their indices down by 6-10%. In line with the global markets nifty is also expected to open weak. Don’t be surprised to see a 100-150 points Gap down opening in nifty.
On the lower side nifty may find support near 3289, 3240 or 3199 levels. Similarly on the upper side resistance exists near 3388 or 3424 levels. In worst case nifty is not expected to breach 2997. In case of panic and emotion based trading technical support and resistance has very little importance.
Happy Trading !
Wednesday, October 15, 2008
15 Oct'08: Exhaustion
In line with our expectation yesterday market opened strongly with a gap up of about 150 points and the opening high remained the day’s high. Nifty did not dared to break our third resistance of 3667 which is almost near to the 200 week moving average and any up move has to break this level for further upward movement. In the second half session, nifty showed some weakness which may be attributed to selling pressure at high levels and eventually came down to fill the opening gap up to close at the lowest point of the day which is not at all a good sign for the bulls.
It seems celebrations are fading out in US market as it traded and closed with a weak note. Following the US market Asian markets also opened and trading weak. In line with the global markets nifty is also expected to open weak with a flat to negative note. Don’t be surprised to see a Gap down opening in nifty.
On the upper side nifty may find resistance near 3610 or 3695 levels. Similarly on the lower side support exists near 3462, 3405 or 3370 levels. In the daily candle stick chart, yesterday’s trading left a “Inverted Hammer” which is one of trend reversal pattern and same can be confirmed by today’s trading.
Happy Trading !
It seems celebrations are fading out in US market as it traded and closed with a weak note. Following the US market Asian markets also opened and trading weak. In line with the global markets nifty is also expected to open weak with a flat to negative note. Don’t be surprised to see a Gap down opening in nifty.
On the upper side nifty may find resistance near 3610 or 3695 levels. Similarly on the lower side support exists near 3462, 3405 or 3370 levels. In the daily candle stick chart, yesterday’s trading left a “Inverted Hammer” which is one of trend reversal pattern and same can be confirmed by today’s trading.
Happy Trading !
Tuesday, October 14, 2008
14 Oct'08: Global Markets Rejoicing
As per our expectation yesterday nifty made a strong bounce back on the back drop of strong Asia markets. The due for technical bounce back was expected and been mentioned in our earlier posts repeatedly. Yesterday nifty opened with a strong gap up of about 100 points. During the day on its upward travel it tested and broke our mentioned first two resistance levels. Our third resistance level resisted nifty’s further up movement strongly and nifty made the day’s high near the mentioned resistance level of 3505 by a very few points.
Yesterday in US market there was celebrations and the market rejoiced by the Bush’s announcement of expanded bank bailout details. US market indices are up of about 11-12% which is the highest one day move in last 76 years. Asian markets also opened and trading strongly. As Japan market could not participate in yesterday’s rally as it was closed yesterday, today it opened very strongly and trading at almost 13% up.
Following global market celebration and rejoicing nifty is expected to open strongly with a gap up today also. On the upper side nifty may find resistance near 3548, 3606 or 3667 levels. Similarly on the lower side support exists near 3394 or 3298 levels. The weekly support exists at 3046.
Happy Trading !
Yesterday in US market there was celebrations and the market rejoiced by the Bush’s announcement of expanded bank bailout details. US market indices are up of about 11-12% which is the highest one day move in last 76 years. Asian markets also opened and trading strongly. As Japan market could not participate in yesterday’s rally as it was closed yesterday, today it opened very strongly and trading at almost 13% up.
Following global market celebration and rejoicing nifty is expected to open strongly with a gap up today also. On the upper side nifty may find resistance near 3548, 3606 or 3667 levels. Similarly on the lower side support exists near 3394 or 3298 levels. The weekly support exists at 3046.
Happy Trading !
Monday, October 13, 2008
13 Oct'08: Will Cat Bounce?
On Friday as we had mentioned in our notes, really the hell was cut loose for the nifty to open with a huge gap down of nearly 300 points and made one more new year low of 3199. With RBI reacted promptly to reduce further 100 basic points in CRR to inject another 40,000 crores liquidity market made some recovery move and finally closed at 3280.
Though the US market on Friday opened very weak, the way it has closed in the last hour of trading by a very good bounce brought some hope in global markets. With all the global players met and decide to take coordinated move to stabilize this ongoing turmoil has boosted the sentiment among the investors. Asian markets are trading the positive terrain. Japan market is closed for today.
Nifty is expected to open in a positive terrain, possibly it would be a gap up opening. As we had mentioned in the last update that all the global markets are due for a technical bounce back and same is expected in any time, we can expect it to happen this week. On the upper side nifty may find resistance near 3386, 3433 or 3505 levels. Similarly on the lower side support exists near 3187 or 3094 levels. The weekly support exists at 3046.
Happy Trading !
Though the US market on Friday opened very weak, the way it has closed in the last hour of trading by a very good bounce brought some hope in global markets. With all the global players met and decide to take coordinated move to stabilize this ongoing turmoil has boosted the sentiment among the investors. Asian markets are trading the positive terrain. Japan market is closed for today.
Nifty is expected to open in a positive terrain, possibly it would be a gap up opening. As we had mentioned in the last update that all the global markets are due for a technical bounce back and same is expected in any time, we can expect it to happen this week. On the upper side nifty may find resistance near 3386, 3433 or 3505 levels. Similarly on the lower side support exists near 3187 or 3094 levels. The weekly support exists at 3046.
Happy Trading !
Friday, October 10, 2008
10 Oct'08: Hell Cut Loose
On Wednesday nifty opened with a huge gap down of around 150 points and went further down to make a new year low of 3330. Nifty broke all the major and minor support levels with a comfortable margin during the onset of panic among the traders. From the day’s low it bounced back to get resisted around the psychological level of 3500 and same been taken out during the last hour of the trading to close at 3513. Almost 150 points recovery from the day’s low had left the traders with some kind of hope on the Wednesday evening.
In spite of taking coordinated move by the major global banks to cut their interest rates to improve the liquidity, global markets doesn’t seems to take to cue and shown some sign of recovery. The US market once again took a blood bath yesterday and closed very very weak making the lowest levels in the past 5 years. Asian market has not failed to take the cue from the US market and opened with a very huge loss of around 7-10%.
Anything can happen in the Indian market today on both the directions. I feel the opening will be very weak with the gap down in line with our peer Asian markets. Don’t be surprised if the nifty tests the Wednesday’s low in the initial hours and in very worst case may be it can break 3330 level also. As all the global markets are due for a technical bounce back and same is expected in any time. On the lower side nifty may find support near 3385, 3330 or 3255 levels. Similarly on the upper side resistance exists near 3588 or 3662 levels. During panic and emotion based trading technical support and resistance has very little importance.
Happy Trading !
In spite of taking coordinated move by the major global banks to cut their interest rates to improve the liquidity, global markets doesn’t seems to take to cue and shown some sign of recovery. The US market once again took a blood bath yesterday and closed very very weak making the lowest levels in the past 5 years. Asian market has not failed to take the cue from the US market and opened with a very huge loss of around 7-10%.
Anything can happen in the Indian market today on both the directions. I feel the opening will be very weak with the gap down in line with our peer Asian markets. Don’t be surprised if the nifty tests the Wednesday’s low in the initial hours and in very worst case may be it can break 3330 level also. As all the global markets are due for a technical bounce back and same is expected in any time. On the lower side nifty may find support near 3385, 3330 or 3255 levels. Similarly on the upper side resistance exists near 3588 or 3662 levels. During panic and emotion based trading technical support and resistance has very little importance.
Happy Trading !
Wednesday, October 8, 2008
08 Oct'08: Uncertainty
Yesterday nifty opened gap up, which was short lived to fall eventually. During the fall nifty took support very very close to our mentioned support of 3539 and made day’s low at 3537. The trend was very choppy going up and down. During the day nifty broke the important support level of 3555 and in no time recovered above this level to close flat above 3600 at 3606.6. forming a doji in the daily chart. Doji signifies uncertainity among the traders which is exactly happening as people are very much confused with respect to the direction of the market.
Once again the US market took a blood bath yesterday and closed very weak with S&P 500 breaking the psychological level of 1000. Following the weak US market, Asian market also opened and trading very weak. Nifty is expected to open weak. Gap down of 50–100 cannot be ruled out.
As both weekly and daily charts gives signal of oversold, bounce back can be expected any time, if not today it may come in couple of sessions. On the lower side nifty may find support near 3559, 3518 or 3430 levels. Similarly on the upper side resistance exists near 3646 or 3714 levels. For any significant change in trend direction, nifty has to close above 3750. Hope nifty does not break March 2007 low of 3555 and psychological level of 3500.
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 !
Once again the US market took a blood bath yesterday and closed very weak with S&P 500 breaking the psychological level of 1000. Following the weak US market, Asian market also opened and trading very weak. Nifty is expected to open weak. Gap down of 50–100 cannot be ruled out.
As both weekly and daily charts gives signal of oversold, bounce back can be expected any time, if not today it may come in couple of sessions. On the lower side nifty may find support near 3559, 3518 or 3430 levels. Similarly on the upper side resistance exists near 3646 or 3714 levels. For any significant change in trend direction, nifty has to close above 3750. Hope nifty does not break March 2007 low of 3555 and psychological level of 3500.
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 !
Tuesday, October 7, 2008
07 Oct'08: Hope for Bottom
Title of our yesterday’s notes best defines whatever that has happened yesterday. In line with our expectation nifty broke 3800 level comfortably in the huge gap down opening. During the downward momentum move, nifty took support near the mentioned level of 3648 and gave a brief pull up. Breaking all the support levels nifty entered sub 3600 level and closed above 3600 at 3602.
US market closed very weak on Monday with Dow closed below the important psychological level of 10000. In the last hour there was strong pull back in the US market indices to close around 3-4% down. Following the weak US market, Asian market also opened and trading very weak. Nifty is expected to open weak with mild gap down.
Yesterday also nifty heavy weight champion Reliance been hammered heavily which has damaged the sentiment among the investors. On the lower side nifty may find support near 3555, 3539 or 3476 levels. Similarly on the upper side resistance exists near 3707 or 3813 levels. For any significant change in trend direction, nifty has to close above 3970. Hope nifty does not break March 2007 low of 3555. On the back drop of RBI announcement to cut CRR by 50 points to 8.5% with effect from 11 Oct. 08 which is believed to increase the liquidity by 20000 crores and SEBI’s action with P-Notes, let us see how it impacts the melting down market.
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 !
US market closed very weak on Monday with Dow closed below the important psychological level of 10000. In the last hour there was strong pull back in the US market indices to close around 3-4% down. Following the weak US market, Asian market also opened and trading very weak. Nifty is expected to open weak with mild gap down.
Yesterday also nifty heavy weight champion Reliance been hammered heavily which has damaged the sentiment among the investors. On the lower side nifty may find support near 3555, 3539 or 3476 levels. Similarly on the upper side resistance exists near 3707 or 3813 levels. For any significant change in trend direction, nifty has to close above 3970. Hope nifty does not break March 2007 low of 3555. On the back drop of RBI announcement to cut CRR by 50 points to 8.5% with effect from 11 Oct. 08 which is believed to increase the liquidity by 20000 crores and SEBI’s action with P-Notes, let us see how it impacts the melting down market.
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 !
Monday, October 6, 2008
06 Oct'08: More Fall
As per our last Friday’s note, the week ended by sending jitters among the traders. Nifty lost another 3.32% on Friday. On Friday, as we indicated nifty opened 50 points gap down and continued to fall during the day breaking all the supports in its way down towards 4800. During the day nifty has not breached 4800 level and closed above 4800 (4818).
US market closed very weak on Friday in spite of bail out package been cleared US congress. Clearance of the package by US congress was exactly as per our view on Friday. Following the weak US market, Asian market also opened and trading very weak. In harmony with global markets, nifty is also expected to open weak. Nifty breaking 4800 level at the opening itself cannot be ruled out.
With nifty heavy weight champion Reliance been hammered heavily on Friday, nifty seems to be vulnerable on the downside. On the lower side nifty may find support near 3759, 3699 or 3688 levels. Similarly on the upper side resistance exists near 3845 or 3923 levels. For any significant change in trend direction, nifty has to close above 4000. Ultimately this downward trend may take solid support near 200 week moving average of 3648 or March 2007 low of 3555.
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 !
US market closed very weak on Friday in spite of bail out package been cleared US congress. Clearance of the package by US congress was exactly as per our view on Friday. Following the weak US market, Asian market also opened and trading very weak. In harmony with global markets, nifty is also expected to open weak. Nifty breaking 4800 level at the opening itself cannot be ruled out.
With nifty heavy weight champion Reliance been hammered heavily on Friday, nifty seems to be vulnerable on the downside. On the lower side nifty may find support near 3759, 3699 or 3688 levels. Similarly on the upper side resistance exists near 3845 or 3923 levels. For any significant change in trend direction, nifty has to close above 4000. Ultimately this downward trend may take solid support near 200 week moving average of 3648 or March 2007 low of 3555.
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 !
Friday, October 3, 2008
03 Oct'08: Weekend Jittery
On Wednesday as we have mentioned, nifty opened positive with 40 points up but could not sustain and eventually took nifty into the negative region. During the day nifty has tested both of our support and resistance levels which were mentioned in our last update. On the lower side, nifty made the day’s low at 3861 which was only few points away from the mentioned support of 3853. Similarly on the upper side, nifty made the day’s high at 4000.5 which is again very closer to our mentioned resistance level of 4009.
US market closed very weak on Thursday on the back of declining factory order report. Though the bailout package was passed by senate, its fate will be finalized by the US congress which is yet to pass the package. In my view, the package will be passed by the US congress also during the voting. Following the very weak US market, Asian market also opened and trading weak. In harmony with global markets, nifty is also expected to open weak. Even a gap down of 50-100 points or more cannot be ruled out.
On the lower side nifty may find support near 3875, 3858 or 3823 levels. Similarly on the upper side resistance exists near 4013 or 4077 levels. For any significant change in trend direction, nifty has to close above 4000.
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 !
US market closed very weak on Thursday on the back of declining factory order report. Though the bailout package was passed by senate, its fate will be finalized by the US congress which is yet to pass the package. In my view, the package will be passed by the US congress also during the voting. Following the very weak US market, Asian market also opened and trading weak. In harmony with global markets, nifty is also expected to open weak. Even a gap down of 50-100 points or more cannot be ruled out.
On the lower side nifty may find support near 3875, 3858 or 3823 levels. Similarly on the upper side resistance exists near 4013 or 4077 levels. For any significant change in trend direction, nifty has to close above 4000.
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 !
Wednesday, October 1, 2008
01 Oct'08: Technical Bounce Back
Welcome to the first trading session for the month of October. As we anticipated, nifty opened gap down in the range mentioned to make a new low of 3715. From the opening day’s low without any delay gave a sharp pull back which continued rest of the day. On its way up nifty went closer to our mentioned resistance level of 3978. More and more soothing words came from all direction which has pleased the nervous investors and the overall market. ICICI bank has recovered like anything from the losses it had incurred in the last couple of sessions.
US market made a “U” turn and recovered some of the Monday’s loss on news of alternate plan of the government for financial crisis bailout. But the credit crisis is still persisting in the Wall street. Taking cue from US, Asian markets also opened with a positive note. On back of positive US and Asian market cues, nifty may continue its bounce back course today also.
On the lower side nifty may find support at 3853 or 3768 levels. Similarly on the upper side resistance exists at 4009, 4020 or 4078 levels. Though the overall trend is down, this leg of upward movement has to be watched closer for any signs of change in trend direction. If nifty closes above 3998 it adds strength to the upward momentum. Nifty may encounter strong resistance around 4040 levels, breaking of it may change the direction of short term trend.
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.
Holiday: Tomorrow 2nd Oct.’08 is holiday for Bse-Nse Exchange.
Happy Trading !
US market made a “U” turn and recovered some of the Monday’s loss on news of alternate plan of the government for financial crisis bailout. But the credit crisis is still persisting in the Wall street. Taking cue from US, Asian markets also opened with a positive note. On back of positive US and Asian market cues, nifty may continue its bounce back course today also.
On the lower side nifty may find support at 3853 or 3768 levels. Similarly on the upper side resistance exists at 4009, 4020 or 4078 levels. Though the overall trend is down, this leg of upward movement has to be watched closer for any signs of change in trend direction. If nifty closes above 3998 it adds strength to the upward momentum. Nifty may encounter strong resistance around 4040 levels, breaking of it may change the direction of short term trend.
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.
Holiday: Tomorrow 2nd Oct.’08 is holiday for Bse-Nse Exchange.
Happy Trading !
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