1. For Wednesday (04/07/12), supports are
at 5288/83, 5275 and 5255. Other levels to watch are in the zone 5180-95. This
also contains the gap on last Friday. Resistances are at 5294, 5334, 5342 and
5357. Other possible upper levels are 5370/75. A -ww gives 5253 but point 5 is
at 5360. As mentioned under the thread on today's nifty, nifty almost made a
double bottom with yesterday's low and then reversed sharply thereby making it
difficult to suggest next move. I feel that market may go max to 5375 (although
not necessarily tmrw). However, 5342 is an important level for reversal.
Similarly, 5195 is also possible but strong buying is expected around 5220/40.
Note that this week (and may be next one too) is for consolidation.
2. Pcr at 1.20 and vix at
18.56. My concern is that INR has improved too fast and FIIs may be encouraged
to book quick profits, albeit partially.
3. Pre-open high/low at
5327.55/5287.95 and close at 5310.40. I feel today could have a 40-60 point
range.
4. As of now, buy below 5336
target 5358/ SL 5306. But be careful, since market may knock out SLs on either
side like yesterday and yield one or both targets. Note that CMP is well below
buy level, which creates doubt. If SL is hit, sell above 5301 target 5277/67 SL
5331.
5. I would consider that SL
for long is triggered as exact SL was actually 5306.30.
6. When SL is hit quickly,
always do half qty in reverse trade. If both SLs are hit, no further trade for
that day.
7. As explained yesterday,
when overall trend is bullish, a short trade is always risky during the
consolidation period due to volatility.
8. Shortsellers should be
alert now. It looks like NS may not go below 5260.
9. Note that nifty has not
only opened above previous low but also has made a new high every day since 2nd
july; after the big rally on 29th june. Also, low of 2nd july was 5263.90, that
on 3rd was 5266.20 and that as of today is 5273.35. If it doesn't break these
recent lows, we may see another upmove in coming days.
10. If it doesn't go up after
3.05 pm then we may not get 5320 today.
11. Nifty opened above previous
close and also made a higher high and low once again as it did on 2nd and 3rd
july. It also closed above the high on 2nd, which is encouraging.
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