12 Dec'08: Over Bought

Yesterday nifty opened with a mild positive note. During the first half of the session nifty was trading in the negative terrain and very often tried to move into the positive side and failed. Also on the lower side nifty defended the 2900 level by sharply bouncing back. In the second half of the session nifty saw the selling pressure and sharply dived till the day’s low of 2861. The last hour of trading was marked with surprise like that of last session where nifty saw a very sharp pull back and closed almost flat. The last hour pull back was contributed by major heavy weights like Reliance Industries, etc. IT sector was hammered during the session. The Nifty high, low & close are as follows:

H: 2945          L: 2861           C: 2920

 

US market closed in negative with their indices loosing around 2-4% in the last hour of trading. Asian markets also have opened and trading in negative region. Nifty is expected to open with a negative bias. Inflation has been reported 8% against the previous value of 8.4%.

 

On the upper side nifty may find resistance near 2956 or 2993 levels. Similarly on the lower side support exists near 2873 or 2825 levels. If nifty can manage to break and stay above the first resistance level it may add more momentum to the nifty towards 3000 levels. Since nifty has entered the overbought level, correction may be expected in any time.

 

Happy Trading !

 

07 Nov'08: Correction Week

As expected nifty opened very weak with a gap down of about 100 points. During the intraday nifty tested our support level of 2864 couple of times and in the second half of the session it gave a surprising sharp up move to fill the initial gap created and fell in no time with the same speed with which it had increased. Nifty closed near our first support level of 2898.

The US market closed very weak yesterday also and most of the indices lost almost 5% once again. Asian markets also opened and trading very weak. In line with US and Asian markets nifty is expected to open weak.

On the upper side nifty may find resistance near 2979 or 3065 levels. Similarly on the lower side support exists near 2834 or 2747 levels. Breaching and closing below 2747 may bring more weakness to the nifty and can move towards 2630. Most of the Index stocks are still closely in the overbought region. Intraday surprises may be expected for the day.

Happy Trading !

06 Nov'08: Counter Rally

As expected nifty positively with a gap up of about 100 points and also as we have indicated profit booking kicked in to utilize the global market induced strong opening. The initial downtrend was arrested around our first support level and nifty traded sideways for a while without breaching our first support level. In the second half of the session nifty breached our first support level which took it further down to close at the day’s low.

The US market closed very weak in view of resurfaced recession worries and most of the indices lost almost 5%. Asian markets also opened and trading very weak. In line with US and Asian markets nifty is expected to open very weak. Even a gap down of 100-150 points cannot be ruled out.

On the upper side nifty may find resistance near 3068 or 3165 levels. Similarly on the lower side support exists near 2898 or 2864 levels. Closing below 2949 may bring more weakness to the nifty. As we were repeatedly mentioned that nifty and other important index stocks have entered the overbought region which resulted in profit booking and this corrective move is expected to continue for at least couple of sessions.

Happy Trading !

05 Nov'08: Overbought

As expected nifty opened weak and traded volatile during the day. Nifty made the day’s low of 2985 which is almost same as the mentioned support level of 2984. Nifty closed with a strong rally during the last hour of the trading in view of US elections.

The US market closed strongly in view of Election Day and following this Asian markets also trading strongly. In line with US and Asian markets nifty is expected to open positive. Intraday volatility may be expected for the day. This ongoing pullback rally may be on for couple of sessions after which nifty has to take some rest by a corrective move.

On the upper side nifty may find resistance near 3201 or 3260 levels. Similarly on the lower side support exists near 3034 or 2926 levels. Closing above 3234 may bring more strength to the nifty. Having nifty and other important index stocks entered the overbought region profit booking can be expected in any time.

Happy Trading !