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 !
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