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 !

 

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 !

03 Nov'08: Pullback Rally

With positive US market and a very strong Asian markets expect a strong opening for nifty. Gap up of 50-100 points cannot be ruled out. Additionally the stimulus package announced by RBI will also help in keeping this rally on. This ongoing pullback rally may be on for couple of sessions.

For today on the lower side nifty may find support near 2786, 2747 or 2687 levels. Similarly on the upper side resistance exists near 2973 or 3059 levels. Nifty has to close above 2951 to sustain the ongoing up move and move towards 3000 or higher levels. Japan market is closed for today.

Happy Trading !

13 Oct'08: Will Cat Bounce?

On Friday as we had mentioned in our notes, really the hell was cut loose for the nifty to open with a huge gap down of nearly 300 points and made one more new year low of 3199. With RBI reacted promptly to reduce further 100 basic points in CRR to inject another 40,000 crores liquidity market made some recovery move and finally closed at 3280.

Though the US market on Friday opened very weak, the way it has closed in the last hour of trading by a very good bounce brought some hope in global markets. With all the global players met and decide to take coordinated move to stabilize this ongoing turmoil has boosted the sentiment among the investors. Asian markets are trading the positive terrain. Japan market is closed for today.

Nifty is expected to open in a positive terrain, possibly it would be a gap up opening. As we had mentioned in the last update that all the global markets are due for a technical bounce back and same is expected in any time, we can expect it to happen this week. On the upper side nifty may find resistance near 3386, 3433 or 3505 levels. Similarly on the lower side support exists near 3187 or 3094 levels. The weekly support exists at 3046.

Happy Trading !