the nifty price had broken below the neckline of the suspected H&S pattern earlier when it went down to below 5200, on eod charts. its not yet broken on the weekly charts.
on the back of short covering and buying in many frontline counters (due to oversold near term charts and positive impact of weak global base metals and commodities as well as some resolution to the Greece debt issue and crude oil moving to near $90/bbl etc) and other stocks of the order of net 400 cr in cash by fii's the mkt rallied up on last friday with about 2.8% gains in a single day and the nifty moving up to near 5480 finally closing at 5471.25. it was expected that it would touch 5500 the next trading day before profit booking would kick in.
![]()
but overnight a 1% downward closing in the dow, there is a possibility that the opening move on monday on nifty as a reaction and profit booking might bring it down to test 5390-5400 region. if that doesn't break then nifty might again move up to test resistance of 5510-5520 in coming days which may be difficult to cross. the sl for longs may be kept near 5335. the short term support for the mkt is 5200 and resistance is 5600. these lvls are clearly seen in the chart, the movement would be restricted within this range for some time.
on the back of short covering and buying in many frontline counters (due to oversold near term charts and positive impact of weak global base metals and commodities as well as some resolution to the Greece debt issue and crude oil moving to near $90/bbl etc) and other stocks of the order of net 400 cr in cash by fii's the mkt rallied up on last friday with about 2.8% gains in a single day and the nifty moving up to near 5480 finally closing at 5471.25. it was expected that it would touch 5500 the next trading day before profit booking would kick in.
but overnight a 1% downward closing in the dow, there is a possibility that the opening move on monday on nifty as a reaction and profit booking might bring it down to test 5390-5400 region. if that doesn't break then nifty might again move up to test resistance of 5510-5520 in coming days which may be difficult to cross. the sl for longs may be kept near 5335. the short term support for the mkt is 5200 and resistance is 5600. these lvls are clearly seen in the chart, the movement would be restricted within this range for some time.
4 comments:
GM Abhay - very hard time :P
"profit booking might bring it down to test 4390-4400"
please time permits correct the "typo" nos. newbees may confuse.
thanks n advance and great week ahead.
regards
ouch !
Sujatha...posted in the dead of the night 2:45 am, errors been corrected now thanx
Thanks ABHAY.
welcome jignesh sir:)
Post a Comment