11 Dec'08: Correction Pending

Yesterday nifty opened in the positive region as expected. During the initial hour nifty was testing the first resistance mentioned and same been broken eventually. Till the first half of the session nifty was trying to break past the second resistance level of 2901 but initially failed and corrected sharply till our first resistance level. In the last hour of trading there comes the surprise factor which resulted in the nifty taking support near our first resistance level and broke the second resistance level with a comfortable margin and closed at the day’s high. The Nifty high, low & close are as follows:

H: 2940         L: 2816           C: 2928

 

US market closed in negative with their indices around 1% down. Asian markets have opened and trading in negative region. Nifty is expected to open flat to negative bias. Even if nifty opens with a gap up, the gain may not be sustained due to profit booking that may emerge.

 

On the upper side nifty may find resistance near 2968 or 3019 levels. Similarly on the lower side support exists near 2849 or 2771 levels. If nifty can manage to break and stay above the first resistance which is the weekly resistance level it may add more momentum to the nifty. Profit booking may emerge at higher levels. Since nifty has entered the overbought level, correction may be expected in any time.

 

Happy Trading !