S&P Nifty (4585.60 points) (-130.30 pts)

It was a melt down at our bourses as the Indices lost around 3%.The Nifty opened lower but recovered the lost ground after theannouncement of the oil price hike. Sentiments turned weak on thevarious news flows and once again the market players pressed thepanic button. In a high volatile session, around 180 points wereknocked off from the days high. The A/D ratio was negative at 1:3and the volumes were also higher.Sharp pullback in the Oil stocks was brought to dust. The onlystandout of yesterday’s turmoil was ONGC (up 5%); otherwise thefall would have been terrible. The long term trendline failed torender any support which reflects the might behind the Bear attack.Now all eyes are on the panic lows 4448-4468 points. Immediateresistance should now be shifted to 4826 points while 4968 pointsremains crucial bottleneck.Intraday, the Bears require a low below 4521 points forcontinuation of the down trend. Pivot is pegged at 4611 points whileresistance is at 4658-4702 points. Trend is down; high risk traderswho wish to go longs in declines for an anticipatory pullback canbuy “call-options” (Nifty4600ce, RIL 2400ca) as the risk isquantified; otherwise stay away till the market settles.

NIFTY Intra Week Volatility 224 pts

S2 4702.35
S3 4571.05
R1 4968.00
R2 5074.00