27/10/09 - Market cues & calls

Nifty Opened gap Down yesterday despite of positive Asian cues and SGX nifty. Buying Witnessed @ lower levels which take Nifty near 5050 mark again, where bulls got tired and cant make it move further above the grip level of 5060 where Morning bears took the charge again which lead to a fall below 5000 and closed below that for 2nd Day. with added RBI credit policy rumour in street and rollover to next month Nifty future whole day had a volatile session. So will Bulls cross 5000 again or bears take the charge for Final assault lets see.

Technical View ::

Nifty took support @ 4960 level again and moved near 5050 where it resisted and came back to 4960, so fight between bulls and bears will continue until the BO level mentioned yesterday (4900 or 5200).Nifty formed a +ve div on hourly charts,which will be negated if oscillators makes low with fall in price. Us markets fell due to strong rebound of US dollar among major pairs where Gold and oil plunged on profit takingm Dow will target the 50 MA which is @ 9675 where we can expect fresh buying coming in until that traders will take profit above 10000 markwhich will Lead to fall again and again. With 1% fall in US markets, today I feel again one more Gap Down where Intraday traders can take a long with 4929 as stop for 4980 and 5015 targets. No change in my expiry view mentioned yesterday. 5065 need to be the stoploss for shorters where we can expect a sudden spike above that level where it will cross 5100 again this time. Safe traders can skip the trading until RBI credit policy announcement where there will be hike in CRR this time.

Levels ::

Nifty fut Supp @ 4928 :: Res @ 5015

Bearish > 5001 < Bullish

Stocks to watch ::

Natco pharma
Zee news
Pricol

QOD :: “There are no failures - just experiences and your reactions to them.”

Happy trading !!!!