The Nifty and the broad market staged a smart recovery on Friday the 30th March. The technicals of the market suggest that this was just a surprise rally as envisaged in the last week's post. The market may continue to be weak if the Nifty does not sustain above the 5210 mark conclusively, in which case the market will give up all the recent gain and find support eventually at 4950. However, on the flip side if it holds above the 5290 mark then it may rally up to 5440. However, technical parameters suggest a weak market in a truncated week. The market will remain closed on 5th and 6th April.
Saturday, March 31, 2012
Sunday, March 25, 2012
The immediate support of nifty of 5210 did hold throughout the week. However, the market looks to be weak for the immediate term and stop loss for trades on long side will get triggered if the market breaks the 5210 level in which case a short term bearish trend might resume taking the market to as low as 4950. However, this being a triple witching week, chances of a surprise rally can not be ruled out in which case the immediate resistance is at 5387. In case market trades above 5387 then we may see another spike up to 5450 and then 5650.
Saturday, March 17, 2012
The immediate support of nifty is at 5295. However, the stop loss for trades on long side will get triggered if the market trades for protracted period below 5295 and then breaks the 5210 level in which case a short term bearish trend might resume. Otherwise we are at the bottom of the trading range. On the flip side, the immediate resistance is at 5350. In case market trades above 5425 in the first few trading sessions next week then we may see another spike up like in the week gone by. 5650 or thereabouts should continue to be the upper end of the trading range.
Sunday, March 11, 2012
Last week the Nifty did manage to hold above the 5210 levels on closing basis, which was a key support level. 5235 is the immediate support which if broken might see another spurt of supply. But to confirm that the the lower end of the range is in place, Nifty has to consistently trade above 5300 level in the next few trading sessions. The resistance will be at 5360 which if conquered may see the Nifty go up to 5420 which will be the next resistance. However if the Nifty manages to trade above the 5500 level, then we may see a fresh bout of purchases.
Sunday, March 4, 2012
As predicted in last week's post, the market did find support at 5268.15 and bounced back from there. The immediate resistance is at 5410 and then at 5495. The short term bearish sentiment will reverse only if the market trades above these hurdles for longer periods and good volumes. The immediate support is at 5330 and 5269. The key level to watch is 5210. Below 5210, stop loss will get triggered and new shorts will be built in the system, giving up all the recent gains. However, the market seems to be at the lower end of the new range (from 5210 to 5650) which will be confirmed if it holds above 5210 throughout the week.