04 Dec'08: Confused N Uncertain

As expected yesterday nifty opened with a mild positive note and made the day’s high at the opening itself where it encountered profit booking. During the day the trend was very volatile and choppy around the previous day’s close level.  The range of nifty was well within the mentioned support and resistance levels. It is interesting to note that the nifty has formed a doji in the daily charts which represents a level of confusion and uncertainty among the traders. The Nifty high, low & close are as follows:

H: 2693          L: 2612           C: 2656

 

US market closed in positive with their indices around 2-3% up in spite of discouraging economic data. Asian markets also have opened and trading in mild positive region. Nifty is expected to open flat to mild move in either of the directions. Intraday surprises may be anticipated for the day.

 

On the upper side nifty may find resistance near 2696 or 2735 levels. Similarly on the lower side support exists near 2614 or 2572 levels. The genuinity of the US market up move will be tested in a day or two. Also as the traders are uncertain on the direction of the market, it is expected for the nifty to decide on the direction in a session or two.

 

Happy Trading !