Nifty opened strong on better global cues yesterday ,traded flat and lighten up on the upside once GDP rolls out, which grew by 7.9% in Q2 September 2009. Metal,IT index lead yesterday's rally.Profit booking came out in after noon session which took nifty near 5000 mark and recovered smartly with 83 point gain. On Dubai crisis UAE central bank offered additional liquidity to local and international banks in the UAE and reassured investors it “stands behind” the lenders. Baltic Dry Index fell for 8th straight session which leads fall in shipping stocks across globe. Dow closed flat with +ve where europe markets closed nearly 1% down again on strong selloff in banks.Asian Markets trading mixed.Lets see whats there in technical side of nifty.
Nifty view::
Nifty took the stop of yesterday's short plan @ 5020. Nifty formed "Island reversal" pattern on EOD charts which is strong reversal pattern for upside, until yesterday's low takes out the pattern is valid for next upside run. Technically we will have a flat to negative open. Negative Divergence spotted on intraday charts. 5054 and 5007 are the levels to be watched today. Breaking or holding one of those levels will lead the market to some extent.Despite of pattern formed on Nifty , I have a gut feel that we made top yesterday atleast for few weeks. More bullishness seen over street and also among retailers.As markets are moving volatile just hedge your positions. Option players can go for a bear spread (Buy 1 lot of Dec 5000 PE and sell 1 lot of Dec 4900 PE = 221) keep until expiry.
Levels ::
Nifty fut supp @ 4985 :: Res @ 5067
Stocks to watch ::
Cambridge
Eurocera
Jaibalaji
Vitlinfo
TTML
Happy trading !!!!!!
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