Nifty tried for a new high but failed to move ahead due to the worry regarding Dollar and took a temporary pause at lower bands of 4830-40. Volatility data shows some profit taking happening at higher levels than creation of new short positions. If the support levels of 4830 are not holding instead of going short look for a panic selling bottom to be a buyer as the price is moving ahead of time. Nifty can take some support at lower levels and trade higher close to 5000 levels. Thus the support levels would act as a major play maker in the game.On the way up we might be playing for a bounce back in the larger downtrend and limit the trades on the long side only to that extent by squaring off the intra day longs.In the equity segment, Ambuja cement is at a major support zone and a break below the previous days low could take the stock to 120 levels.Ranbaxy and Hexaware would be stocks to watch out on the long side as they are getting good support even in a falling market. It can be a make or break for the market and trade the stocks only according to the market conditions. A break below 4830 could lead Nifty to 4750 levels where nifty could take a pause and the chances are high for a double bottom at least in the short term.
Hey Vinu... When you say chances are high for a double bottom... do you mean 4750 levels or 4500 levels??
ReplyDelete@Deepak : I am talking about the short term trend and so it would be 4750. It has already completed a 5 wave decline from 5300 level and as the chart says we can see nifty stopped at an important fibonacci level. Thus it is probably making a short term trading range just before the expiry.
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