03 Dec'08: Surprise

As we had indicated yesterday nifty opened negative with a gap down of about 100 points to take out our first support level at the opening itself.  As we know that when the nifty moves below a critical support level then the same level becomes resistance for it if it is trying to move up. In the same lines during the intraday nifty bounced back and tested our mentioned level of 2624 several times during the first half of the day and could not succeed. But in the second half of the session the surprise factor popped in which broke the mentioned level and taken nifty up to cover the gap created in the opening. Nifty high, low & close are as follows:

H: 2673          L: 2571           C: 2658

 

US market closed in positive with their indices around 3-4% up after a big fall on Monday.  Asian markets also have opened and trading in positive region. Nifty is expected to open flat to mild positive.

 On the upper side nifty may find resistance near 2707 or 2755 levels. Similarly on the lower side support exists near 2595 or 2532 levels. Profit booking may emerge at higher levels.

 

Happy Trading !