Yesterday, the Bulls triumphed in an intensely fought battle. A
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
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
Comments