Nifty respected our upper band of
4910 and headed towards 4830.It is trying to make a base around these levels.
It took support at 4830 twice and a break below this would create some more
panic in the market. Thus it is wise to go for some bottom fishing in stocks in
the coming weeks. Usually if it is a double bottom break out traders would not
get much time to go short as it would be a gap down opening. The scenario would
be same today also if it tries to break those levels as lot of traders expect
4800 levels would be a support and the more buying positions are there the more
would be the selling pressure. I would like to have a look into stocks titan
and delta corp. Titan is showing the same structure like the weaker stocks like
Maruti and Orchid. It got time to distribute at the top and below today’s low
investors are advised to get rid of the stock. The stock might get corrected to
190 levels below previous low. Delta corp. is trying to build a base around 58
levels. Wait for the base formation to get completed and get into the stock if
it is forming a base around these levels and it could get completed within a
week. On the upside the break out of 4910 can lead nifty to 5030 levels and if
you are not getting an opportunity to go short below 4830 leave it and wait for
a short term bounce. As I was mentioning about 12750 as a critical level for
Dow and the index is trading well below that. Thus don’t rush into trading
longs and be an investor at lower levels.
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