The Bulls came out of “Monday fear” as the Nifty surged another 70
points at close. After 2 months of wait the Nifty has closed above
the sentimental barrier of 5000 points. Constant selling pressure in
the past month tested the Bulls but they absorbed it in stride
without further damage. It was a team effort with everybody
contributing including some of the select Midcaps. The A/D ratio
was positive at 2:1 while volumes were slightly lower.
As envisaged in the past weekly reports, the Nifty surpassed the 5K
mark, hitting the immediate hurdle at 5040-5070 points. The Bulls
capitalized on the range expansion as it galloped 400 points in just
4 trading sessions. In this process, it has crossed the resistance line
of the channel in pink. Immediate support is pegged from the
trendline in green which is at 4746 points.
Intraday, 5074-5092 points range is the crucial bottleneck in the
Nifty. Pivot for the day is at 5024 points with crucial support in
declines at 4926 points. The Nifty completed the 61.8% retracement
(5024) of the fall from 5368 to 4468 points. It has come out of
sideways range of 300 points (4620-4920) giving a target of 5220
points; but that’s going to be an uphill task from here on. Some
genuine profit taking is expected. A breach of 4888 points would be
a cause of worry for the Bulls but intraday traders should take
profits regularly or protect their open long positions appropriately.
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