The brutal Bull massacre resumed after the Friday’s break. Nomercy was shown as the Nifty lost almost 200 points from the dayshigh. The markets opened higher on the backdrop of the IT andbanking stocks but it were the Oil & Gas sector that led the turmoil.Banking stocks, Reliance Pack, ONGC and BHEL were the culpritsof the 2.5% debacle. The A/D ratio was negative at 1:3 while thevolumes were marginally lower.There was no respite once the Nifty broke below 4870 points. Theintensity of the Bull liquidation coupled with selling pressure wasso high that it ripped off all the intraday supports. Trendline of the“downward sloping channel” in blue was also marginally breached.The Nifty has to close above 4734 points in the coming sessions toshow some semblance but as long as the 4916-4932 points’ area isnot decisively crossed upside appears to be capped. On thedownside, support is pegged at 4681 (monthly s1) and 4613 points(trendline joining 4002 and 4468)As mentioned earlier, unless 5040 points is not crossed in closingthe short term continues to remain down. Intraday, pivot at 4768points needs to be sustained for any upside. Resistance is pegged at4787 and at 4826 points. A low below 4704 points can test 4665points in a couple of days. Market is expected to remain swinging,small players should refrain and wait till the volatility cools off.
NIFTY Intra WeekVolatility 224 ptsS2 4702.35S3 4571.05R1 4968.00R2 5074.00 ==============================================Short Term........!
Crompton Greav Buy in Dips Only CMP: 235.60 Tgt: 248-256The daily candlestick chart of Crompton shows that it is in a short term downtrend.It is pecking the resistance line in pink. Immediate support is at Rs.224. High risktraders can buy in small quantities in declines around Rs.228-230 with astrict stop loss below Rs.222 in close for a pullback to Rs.248-256 in the next7-8 trading sessions .
* It’s an anticipatory call Avoid gap openings and trade in cash.
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