Sunday, October 25, 2009

The game is decided but may be not over yet...

We had mentioned about Nifty taking support around 4940-70. Already we have seen it touch a low of 4972 (We always speak in terms of Nifty 1st month futures if not mentioned otherwise).

Going forward, two possibilities come up:
1. Nifty bounces from the current levels (range ~ 4940-4970, reason being explained as in earlier post) to 5270-90 region before falling drastically towards 4500 and,
2. NF slides to 4940 and closes below 5018, thereby opening chances of further slides from here only.

So, to my view 4940 holds as the key support zone on intraday basis and 4990-5018 as the closing basis. Any close above that will see panic buying as being supported by the weekly levels and as explained in the previous post for daily levels. One thing to be kept in mind is that we will surely see 4500 before the final rally towards new highs, but the question remains when? Now or from 5290. So watch carefully Mondays trading.....

Happy trading!!!

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Investing in stock markets carries inherent risks. Readers are requested to consult their financial adviser for trading / investing. The views expressed here are solely that of the author and he wont be responsible for any gains or loss arising to the readers for trading based on the expressed ideas.