Stuck in a range Nifty is looking for direction or rather I must say making a base for the next move. At the risk of being repetitive, the status quo remains, the cues from the world market will define further moves. We don’t have any strong domestic triggers as of yet, and most will find it is prudent to wait till the exact picture of the U.S bailout is clear. Writing off a few trillion here and there might be just a stroke of pen for the government but it definitely going to have a greater impact on the people. Nothing is gratis; the bill will come later and it will be huge!
A brief dekko at the intraday action, the hourly chart below shows the signs of struggle the price is witnessing at the confluence of the 20 and 50 periods EMA’s. It is also stuck in a range between the 23.6% and 38.2% retracement levels. 4050/4000 is the ultimate levels the bulls need to protect, whereas for now 4100/4115 are good supports. A break above 4185 can take us to 4250 which to me looks like a formidable resistance now. Any further upside targets should be calculated only once we conquer and close above 4250!
Nothing much changes in the daily chart too, we have 20/50 periods MA’s providing resistance at 4275/4305 respectively. The support on the way down is at 4050.
For a nimble intraday trader there are many opportunities during the day but if day trading aint your style then better be on the sidelines. The huge volatility and so many gap ups and gap downs is sure enough even to shake the most seasoned traders. Speaking of volatility, tomorrow we might have plenty of it, because of derivatives expiry and also the inflation figures that will come after market hours
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