>> Sunday, March 22, 2009
Last week we saw NIFTY was in a rangebounded mode.
Last week NIFTY closed at 2719 and this week at 2807 an increase of 90 points odd.
The week was volatile.
NIFTY TRIN at 1.118
Over all Nifty is bearish.
Pivot - 2824
Support - 2720 and 2660
Resistance - 2902 and 2945
Reversal from either of these levels would provide the opportunity to initiate fresh short positions. (Resistance)
Nifty struggled with the psychological resistance at 2800 last week; reversing from an intra-week peak at 2836. But the correction so far has been extremely mild and the index has been meandering in a narrow band between 2770 and 2820 in the last two sessions. Traders need to exercise caution until the index records a strong move above 2800. For a reversal from here will cause a medium term decline to 2570 or lower. Short-term supports for the index are at 2720 and 2660. Stop-loss for long positions ought to be at 2700.
A strong move above 2800, on the other hand, will take the index to 2946 or 3054 in the near-term. Fresh long positions should therefore be initiated only on a strong move beyond 2820. It however needs to be remembered that a run-away rally is not likely in the Nifty yet since the medium-term ceiling for the index could be at 3000 or 3200.
NIFTY Autogenerated Technical Analysis