24, May
Nifty 3199.35
If Nifty sustains above 3120 level, it has possibility of testing 3350-3400 level in one or two trading sessions. If Nifty moves in expected lines, then we could see sharp rally in many frontline counters. Buying Call options could fetch good profits. Futures positions can be hedged using options as the swing is going to be wide in any case.
If the region 3120 is violated in the downside, we could see a range bound trade or a sharp decline towards 2900 level. An early indication of weakness comes if Nifty trades below 3050.
It seems that the overall trend in the Nifty continues to be bullish. Nifty has retraced around 25 percent from the high in percentage terms. Any percentage of retracement with in one third ( 33% ) retracement level is acceptable for a bull market correction.
Wednesday, May 24, 2006
Tuesday, May 23, 2006
TECHNICAL OUTLOOK
23, May
Nifty 3081.35
Yesterday, I mentioned that 3050 region is the tip of the running triangle. On previous day Nifty closed at 3081.35 and it is well above 3050 level. It seems that a bottom is formed, provided Nifty doesn’t go below 3000 in coming trading sessions. For today’s trading, if the region 3000 is not violated, we could see a rally towards 3300 region initially. If that is the case, then we could see strong rally in frontline counters.
On the other hand, if Nifty moves below 3000 level, it could move below its previous low of 2896 and it could test 2800 level.
It seems that the overall trend in the Nifty continues to be bullish. Nifty has retraced around 25 percent from the high in percentage terms. Any percentage of retracement with in one third ( 33% ) retracement level is acceptable for a bull market correction.
Nifty 3081.35
Yesterday, I mentioned that 3050 region is the tip of the running triangle. On previous day Nifty closed at 3081.35 and it is well above 3050 level. It seems that a bottom is formed, provided Nifty doesn’t go below 3000 in coming trading sessions. For today’s trading, if the region 3000 is not violated, we could see a rally towards 3300 region initially. If that is the case, then we could see strong rally in frontline counters.
On the other hand, if Nifty moves below 3000 level, it could move below its previous low of 2896 and it could test 2800 level.
It seems that the overall trend in the Nifty continues to be bullish. Nifty has retraced around 25 percent from the high in percentage terms. Any percentage of retracement with in one third ( 33% ) retracement level is acceptable for a bull market correction.
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