05 Dec'08: Speculation Rally

As expected yesterday nifty opened with a mild positive note. During the first half of the day on the way up nifty got resisted around the mentioned resistance level of 2735 but during the second off nifty gave that surprise factor by breaking all the resistance and closed at the day’s high. Nifty is rallying on expectation of economic package or rate cut from RBI this weekend. It is to be noted that the inflation has come down to 8.40% from 8.84%. The Nifty high, low & close are as follows:

H: 2794          L: 2647           C: 2788

 

US market closed in negative with their indices around 2-3% down in the last hour of trading. Asian markets have opened and trading flat to mild positive. Nifty is expected to open flat to mild positive. Intraday volatility and surprises may be anticipated for the day.

 

On the upper side nifty may find resistance near 2839 or 2889 levels. Similarly on the lower side support exists near 2692 or 2597 levels. Today would be the testing day for nifty. If nifty can manage to break and stay above the first resistance which is very critical level it may add more momentum to the nifty. Profit booking may emerge at higher levels.

 

Happy Trading !