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 !

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 !

08 Oct'08: Uncertainty

Yesterday nifty opened gap up, which was short lived to fall eventually. During the fall nifty took support very very close to our mentioned support of 3539 and made day’s low at 3537. The trend was very choppy going up and down. During the day nifty broke the important support level of 3555 and in no time recovered above this level to close flat above 3600 at 3606.6. forming a doji in the daily chart. Doji signifies uncertainity among the traders which is exactly happening as people are very much confused with respect to the direction of the market.

Once again the US market took a blood bath yesterday and closed very weak with S&P 500 breaking the psychological level of 1000. Following the weak US market, Asian market also opened and trading very weak. Nifty is expected to open weak. Gap down of 50–100 cannot be ruled out.

As both weekly and daily charts gives signal of oversold, bounce back can be expected any time, if not today it may come in couple of sessions. On the lower side nifty may find support near 3559, 3518 or 3430 levels. Similarly on the upper side resistance exists near 3646 or 3714 levels. For any significant change in trend direction, nifty has to close above 3750. Hope nifty does not break March 2007 low of 3555 and psychological level of 3500.

SUN OUTAGE: Between 24th Sep.’08 to 8th Oct’08 market will remain closed between 11 25 hrs to 12 10 hrs due to sun outage and market will close at 16 15 hrs instead of 15 30 hrs.

Happy Trading !