10 Dec'08: Stimulation Rally

On Monday nifty opened very strongly above 2800 backed by the rate cut by RBI and better inflation numbers. During the day nifty defended 2800 level but in the last hour of trade it fell very steeply below 2800 level and also closed below it. The Nifty high, low & close are as follows:

H: 2861          L: 2762           C: 2784

 

US market tumbled after two days rally to closed in negative with their indices around 2-3% down. Asian markets have opened and trading in positive region. Nifty is expected to open flat to mild positive. Intraday volatility and surprises may be anticipated for the day. The way market closed on Monday shows some weakness in the charts.

 

On the upper side nifty may find resistance near 2842 or 2901 levels. Similarly on the lower side support exists near 2744 or 2704 levels. 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 !