The market opened higher yesterday amid mixed cues from the Asian markets. The market remained range bound till late afternoon when hectic buying in front line stocks lifted the sentiment and the indices too firmed up progressively till the closing hours.
Apart from India and China, most of the Asian markets maintain their weak run. Asian markets mostly ended lower on a combination of strong dollar and continued worries on the global macroeconomic scenario. The US currency had hit a fresh four-year high against the Euro yesterday and though the currency eased somewhat in the intraday moves, the sentiments were uncertain, keeping the late recovery under check for the Asian stocks.
However, for NIFTY/BANKNIFTY/CNX-IT, the Momentum Signal system indicated a buy after a small correction. The Nifty futures never traded below the last closing price of 4940 on Wednesday (yesterday) indicating some strength. This strength was seen even after the overnight losses in the US markets (around 122 points in DOW) and it’s effect on the European markets when they opened. The trading was confined to a narrow range for most of the day and the futures rallied in the final hour of trading. Nifty spot closed at 5014, near the day’s high. The Nifty future is expected to test the resistances one by one now. However, everything related to trading still depends on the international cues which are unpredictable. The next resistances are the 100 and 50 DMAs at 5102 and 5173 respectively. If the futures is able to cross these resistances, a target of 5250 to 5300 may be feasible.
FOR TODAY:: AFTER VERY HIGH VOLATILE MOVEMENT NIFTY FUTURE CLOSE ABOVE THE 200DMA AT 5005. ANOTHER TWO CLOSING ABOVE THIS LEVEL OR TRADING ABOVE 5066 ONLY CONFIRMS THAT WE ARE OUT OF WOODS FOR A SHORT TIME. TODAY WATCH FOR 5066-5088 LEVEL. IF THIS CROSSED WITH VOLUMES THEN WE MAY SEE NIFTY AT 5155 WITHIN THIS WEEK. IF NOT CROSSED 5088 AND BOUNCED BACK FROM THIS LEVEL, EXIT FROM LONGS.
Disclaimer: I have some position in Nifty and in some stock futures. I may have some vested interest for the above. Trading in stock markets is risky. Traders/Investors are advised to trade as per their own risk taking apetite.
For options calls, I will post at "Jayfromstockmarketsinindia.blogspot.com" which is free but on invitation basis.
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