>> Sunday, April 19, 2009
Last week we saw NIFTY was in a range bounded mode. Average uptrend was seen. Followed by strong global cues.
Last week NIFTY closed at 3342.05 and this week at 3384 an increase of 40 points odd. A moderate one.
But we saw sell off's coming from higher levels.
FII's participation was good.
The week was followed with good global cues and also good local cues.
NIFTY TRIN at 0.484
Over all Nifty is Bullish.
NIFTY Nature - Wait and Watch
Support - 3310 and 3245
Resistance - 3420 and 3510
Reversal from either of these levels would provide the opportunity to initiate fresh short positions. (Resistance)
Nifty made an attempt to climb above 3500 before a mild correction set in. It is difficult to determine if the movement over the last three sessions is a terminal corrective or a running correction. According to both the counts, sharp moves can be expected in the week ahead. As explained before, if the move from the 2539 low is the B wave of a long-term bear market, its first targets would lie in the zone between 3480 and 3680.
Since Nifty is already at this zone, it would do to stay extra vigilant.
The short-term trend however continues to be up and traders can buy in declines as long as the index holds above 3300. A firm close below 3100 is needed to indicate that the medium-term trend is reversing lower. Upper targets for the week are 3550 and 3684.
NIFTY Auto generated EOD Technicals.