12K mark (nifty managed to hang on above 3600). Another deep cut
of over 5.5% left the Bulls bleeding. CGS and IT sector collapsed
while meltdown in metal stocks continued. RIL along with Power
stocks led the turmoil. The A/D ratio was highly negative and the
volumes were higher than the previous session.
In this process, the Nifty has retraced 50% (3603) of the rise from
849-6357 points. Immediate support is pegged at 3566 points which
is the 50% retracement of the rally from 775 (Dec 1996) to 6357
(Jan 2008). If the above supports hold we may see a pullback to
3879 points (trendline resistance in pink) with intermediate hurdles
at 3745 and 3818 points. The 3920 points has to be decisively
crossed to stall the downswing and sustained move above 4110
points is required to signal strength. Yesterday was the 55th trading
day (Fibonacci number) from the July 2008 low at 3790 points.
Intraday, pivot is pegged at 3646 points which needs to be sustained
for pullback to materialize in a rally. Resistance is at 3745 and up
at 3805 points in an optimistic scenario. Crucial support in declines
is at 3555-3565 points. Respective governments are taking utmost
measures and pumping liquidity to bail out the Bulls. Hope their
efforts do not go futile this time. High volatility with intraday
swings is likely to prevail, trade with a stop loss.
NIFTY Intra
Volatility 319 pts
S2 3623.95
S3 3724.40
R1 3974.20
R2 4130.05
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