Today Nifty Futures had a strong resistance around 4610-20 zone.......I told that to all my clients in the morning.......The support was around 4515 and same for tomorrow lies at 4486-4505 zone (Futures levels)........The morning saw twice return from the psychological support of 4550 but could not sustain that in the last hour.......
Yesterday, I had recommended longs in specific stocks with a short in Nifty at 4527......There was a reason behind that.....4527 declining line is a strong resistance and this is the same line which connects the 22nd Jan and May 2008 falls.......So it remains stiff resistance.......Yesterday, when DOW ran, almost everybody concluded that they will lose money in the short and Nifty will certainly run to 4700+ today.......I only suggest 1 thing.....Never trade with pre-conceived notion......I always repeat that NEWS do not drive markets......Its all about technicals.....Infact my last post was written on this topic and that gets proved again today......
The question lies.......Now what????
Well, my feeling is that there will be a synchronization of stocks with the index while Nifty remains rangebound within this 100 points move.......Why? The reason is.....all stocks have to hit resistance one by one and then only Index can decide its future direction......Like all the banks and real estate moved first with Nifty and fell with Nifty today......But Autos lend support today.....Similarly ADAG group has to come forward while RIL remains dormant as it can alone move the index........Hope the sync gets completed by Friday and we get the next move....Up or Down? Well, logic says 4380-4400 first.....But you never know........
Yesterday, I had recommended longs in specific stocks with a short in Nifty at 4527......There was a reason behind that.....4527 declining line is a strong resistance and this is the same line which connects the 22nd Jan and May 2008 falls.......So it remains stiff resistance.......Yesterday, when DOW ran, almost everybody concluded that they will lose money in the short and Nifty will certainly run to 4700+ today.......I only suggest 1 thing.....Never trade with pre-conceived notion......I always repeat that NEWS do not drive markets......Its all about technicals.....Infact my last post was written on this topic and that gets proved again today......
The question lies.......Now what????
Well, my feeling is that there will be a synchronization of stocks with the index while Nifty remains rangebound within this 100 points move.......Why? The reason is.....all stocks have to hit resistance one by one and then only Index can decide its future direction......Like all the banks and real estate moved first with Nifty and fell with Nifty today......But Autos lend support today.....Similarly ADAG group has to come forward while RIL remains dormant as it can alone move the index........Hope the sync gets completed by Friday and we get the next move....Up or Down? Well, logic says 4380-4400 first.....But you never know........
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