S&P Nifty (4715.90 points) (-23.70 pts)

The Nifty opened lower and drifted down to hit the daily S2 at 4636points. When the second attempt failed to breach it (4636), someshort covering began. Reliance took the initiative which was wellsupported in rotation by the other heavy weight stocks. In theafternoon session, the pullback turned out to be a rally of around 90points as the intraday shorts had to give up in the end. Volumeswere marginally higher while the A/D ratio was negative at 1:2.In the recovery the Nifty almost filled up the negative opening gap.Crucial support from the trendline support in blue is pegged at 4631points. Immediate resistance is at 4819 points and as long as ittrades below 4968 points treat the rallies as pullbacks only.Resistance line of the upward sloping channel (5010) needs to bedecisively crossed for fresh up momentum.Intraday, crucial support is pegged in the 4680-4690 points’ areawhile resistance at 4758 points if crossed can test 4787-4802 pointsin an optimistic scenario. It has made a “Hammer”, but the Bullsrequire a high of 4826 points in a day or two for the recovery tocontinue, else the markets may consolidate first. Banking and Oilstocks need to gear up for the survival of the Bulls. As the market isvolatile, traders should keep on churning their positions or holdwith trailing stop loss.

NIFTY Intra WeekVolatility 224 pts

S2 4702.35
S3 4571.05
R1 4968.00
R2 5074.00