24 Oct'08: Ripe For a Pull Back

As we have mentioned nifty made a new low. Once again yesterday was a very volatile day. Nifty opened with a huge gap down of around 150 points and recovered to some extent to test the 3000 mark several times. In the second half of the session nifty managed to break 3000 mark decisively and gave a very strong pull back which took nifty in the positive region and made the day’s high at 3085. But nifty short lived in the positive region and made a nose dive towards the day’s low after making a double top pattern. Nifty closed below 3000 level in a disappointed manner at 2943 which also damaged the sentiment among the investors.

The US market saw a very volatile session and closed with a mixed note. DOW and S&P500 are up by 2% and 1.26% respectively. Asian markets also opened and trading weak with a negative bias. Nifty is expected to open flat to mild negative.

For today on the lower side nifty may find support near 2879, 2865 or 2815 levels. Similarly on the upper side resistance exists near 2982 or 3046 levels. As it was mentioned in the earlier note that the support level of 2865 which is also the weekly support level may resist nifty’s downfall. As nifty is in the oversold region for a very long time, in any time it can give a very strong pull back. We have to wait and watch whether nifty will manage to close above last week closing level of 3074.

Happy Trading !

23 Oct'08: Ready For Another New Low !

As expected yesterday nifty opened weak with a 100 points gap down. During the day nifty traded very weak, every intra day pull backs got sold off like a hot cake. Nifty went very close to the year low of 3047 and made day’s low at 3052. During the downward journey during the day nifty has shattered all the important support levels, but it closed exactly at our mentioned support level of 3065. Whatever gain nifty made on Wednesday was given back yesterday. Failure to hold 3200 level is definitely is not a good sign.

The US market broke all the major support levels yesterday and closed with a very negative note with their indices down by about 4-6% down. Asian markets also opened and trading very weak. Nifty is expected to open negative. Its almost sure that nifty is going to make new low in the opening itself. Breaking the 3000 level will definitely damage the sentiment.

For today on the lower side nifty may find support near 2999, 2934 or 2865 levels. Similarly on the upper side resistance exists near 3183 or 3256 levels. In any case the mentioned support level of 2865 which is also the weekly support level should contain nifty’s downfall. As nifty is in the oversold region for a very long time, in any time it can give a very strong pull back.

Happy Trading !

21 Oct'08: Technical Bounce Back

The 3000 level in nifty is still preserved. Yesterday in line with our expectation nifty opened with a gap up. Though the intraday trend was very choppy nifty stayed within the mentioned support and resistance levels. On the higher side nifty went closed to our resistance level of 3258 and made the day’s high at 3238 from where it fell very sharply.

The US market closed with a very positive note after the Federal Reserve chairman’s support for further aid to support the economy. Asian markets also opened and trading with a positive bias. Nifty is expected to open positive. One more gap up opening for today is definitely there in the cards.

As indicated in the last notes the nifty daily chart has entered into the oversold region and also the weekly chart is in deep oversold region, possibility of a strong pull back is bright. For today on the lower side nifty may find support near 3042 or 2961 levels. Similarly on the upper side resistance exists near 3221, 3276 or 3319levels.

Happy Trading !