Monday, July 28, 2008

Nifty Futures Outlook

(Image No # 1)


On 23rd July, Nifty Futures (Refer Image No # 1) had opened with a GAP up above the resitance levels of 4383 for that day.....This was followed by a sort of Hanging Man candlestick the next day.....Nifty futures now faces a very stiff resistance of the declining 4530 line......Since then, I have been saying that Nifty Fut has to come down to 4275-4250 range to fill that GAP. Today it closed below the resistance levels of 4350........

Now, if Nifty Fut does not fill up the GAP, weakness remains in the system......Infact, it tried to bridge the GAP several times during the course of the day, but each time the psychological levels of 4300 gave it support.......

Tomorrow morning, expect this GAP to be filled......So, go long of NIfty around 4250 tomorrow with a stop of 20rs......If RBI comes up with any negative news like a 50bps Repo and 25 bps CRR hike, then you might even see 4150 on Nifty Fut.




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