m kt ahead...nifty 28th june 2011...

the public sector oil companies stocks and other counters continued their gains and kept nifty up in  yesterday's trade also.

in the morning nifty did come down but remained much above 5400 and again started its upmove to take out the profit booking zone 5510-5520 quite easily, remained steady and closed above it. minor resis near 5550 and it seems is well poised toward that 5580-5600 lvl now. the near term support seems to have shifted up in 5400-5450 zone.

mkt ahead...nifty 27th june 2011...

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.