huge crack developed at the open was filled up by the end of the
day. Reliance and Banking (PSU) stocks recovered smartly and with
the CGS sector chipping in; what appeared to be pullback emerged
into a 150 points rally. Intraday Bulls had no option but to give up.
Volumes were higher but the A/D ratio was marginally negative.
Short covering was seen when the Nifty touched the 1st target of
3920 points (also a fall of 300 points from 4220 as mentioned
earlier). Now the 3920-3938 points’ area (weekly s2) is a crucial
support but the Nifty needs to sustain above 4220 points to ward off
the Bear threat. Resistance is pegged at 4323 and 4445 points.
We are seeing a “long legged doji” pattern after a 639 points fall in 7
sessions. The odds have become even around 3950 points. Intraday,
pivot is at 4028 points with crucial support at 3960 and 3920 points.
If it sustains above 4077 points then a test of 4129-4167 points. The
Index Heavy weights have ably shouldered the responsibility, now
it’s a matter to hold on. As expected, Reliance and Banking stocks
performed; now contribution of Metal pack is required to keep the
momentum otherwise the nightmare continues.
NIFTY Intra Week
Volatility 292 pts
S1 4099.70
S2 3938.85
R1 4361.90
R2 4563.00
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