NIFTY VIEW JAN 30

Hi,

“Markets are technically at their strongest after a sharp decline and technically at their weakest after a sharp advance”. -- Robert C Beckman

On Friday we had written: “Today NF will face resistance around 5187-5198. On crossover above 5198, NF will go up to 5219. Considering two different highs from the high of 6349, trend line resistance comes around 5240 and 5275”.

NF made high of 5221.95 in the morning trade, in last hour of trade NF made high of 5224.95.

Today, while updating this SGX nifty is trading at 5170.

Today’s trading levels for Nifty Future:

Resistance: 5225-5240-5255-5297

Support: 5166-5107-5093

Now today above Friday’s high, NF will go up to 5240-5255.  On crossover above 5255, NF will go up to 5297. On close above 5225, rally can continue to Friday.

On lower side 5166 will provide strong support. Bears needs to break 5166 with volumes and should sustain below this level for the reversal.

Below 5166, NF can go up to 5107-5093 in panic.

Today is 21^st day is from the low of 4592 and 30^th day from the low of 4538. Reversal will occur from today (+/- one day) or from Friday i.e. 3^rd Feb (+/- one day).

After 4^th Apr’ 2011 (open high was 6000 on that day), first time NF has entered in to overbought zone in daily chart. So in last 20 days from the low of 4592 what fundamental has changed? On the contrary Government is finding ways to bridge gap of fiscal deficit. IMF is warning to prepare for recession like great depression of 1930. Then why market has rallied? Is the reason to erase bearish consensus from the mind of investor?  We don’t know the reason but we will trade with levels only.

Regards,

 ANALYSENIFTY TEAM  

short alstom project below

350 sl 355 tgt 340,338