NIFTY VIEW 3RD FEB

Hi,

Yesterday we had written: “today watch 5295-5302-5325 range carefully. If NF is making high around this range and breaks day low then we will see sharp fall”.

NF opened at 5280 made high around 5295-5297 and once broke morning low of 5280, there was a clean shave of almost 50 points. NF made low of 5232.30.

We had also written: “Today 5222 is a strong support. Till NF is above 5222, there is no problem for bulls.”.

After making day low of 5232.30 again NF zoomed to make high of 5299.90 but could not cross 5295-5302-5325 zone.

Today, while updating this SGX nifty is trading at 5283.

Today’s trading levels for Nifty Future:

Resistance: 5295-5302-5325-5403-5444

Support: 5247-5239-5232-5201-5190

Now, today watch again 5302-5325 range carefully. On crossover above 5325 with volumes and sustains above it for 10-15 mins than we will see rally up to 5403-5444.

Today 5247-5239-5232 is again a strong support zone. Bulls are safe till NF is above this zone. If NF breaks 5232 then 5201-5190 are last hope for bulls. Break below 5190 with huge volume will indicate reversal.

Friday (i.e. today +/- 1day) is very crucial for this rally from the low of 4538, we will see top in these three days followed by a correction of at least 5-8days.

So far (-ve) divergence has been seen is in daily chart, confirmation will be come below 5190. Last (-ve) divergence has seen during sep-oct’ 2010 in daily chart. After that we have seen high of 6349 in the first week of Nov’ 2010 and then reversal and low of 4538. Now let’s see what happens this time, new low or a small correction- consolidation and continued uptrend?

BUY M&M ABOVE 712 SL 705 TGT 725,730

Regards,

ANALYSENIFTY TEAM