testing times!!!, mkt ahead 30th nov 2009...

after a long time the negative correlation between the global equities and the us dollar index gets disturbed, and asian mkts particularly seen correction on dubai debt payment delays in real estate sector giving doubts on economic recovery in that part of the world and indian listed shares of companies having operations in west asia getting a good amount of beating. fii's are continously turning out to be net sellers in cash in large amounts.

technically, i had said mkt was losing momentum and we could get a whipsaw/volatility, and that's what we are seeing. near term positional long traders are already out on break of 5030/5000 and hence got protected from the further 200 point fall.

the imp 4880/4900 lvl was broken but mkt saw recovery by the close of the day above that lvl. 4800 at the moment, from options data, looks as the near term support but after a pullback some more weakness may still be left.

it may be noted that 4550/4350 are very crucial medium to intermediate term support lvls if the nifty is to tgt 5300/5400 and any breaking of those lvls will make it that much more difficult, though not impossible, for nifty to achieve the higher tgts. at the moment iam still optimistic on the higher tgts in the intermediate term.

however 4880 was held on closing basis, and in the very near term any bounce nifty may possibly get restricted to 5012/5030. so the near term range is about 4800 to 5030.