Day Trading Calls with Market Review for 5 April 2010
Nifty closed in green today, preventing a negative weekly close—thereby keeping hopes alive for the bulls and testing the patience of bears. The daily momentum continues to be in a sell mode, whereas the hourly momentum has come into a buy mode but trading below the zero reference line, thus falling short of confirming that the trend has again reversed on the upside. The market breadth has improved over the last couple of days but the volumes continue to be low even after the breakout from the high of the bearish engulfing candlestick pattern formed on the monthly charts on the Sensex—this is not a good sign. Nifty formed a hammer candlestick pattern in Q3 and Doji star candlestick pattern in Q4 almost gaining nothing in the six months. Nifty has formed a 5 wave declining pattern on hourly charts in the fall since Tuesday and has retraced almost 61.8% of its fall from 5330 to 5235. Going ahead, the high of 5330 remains a crucial resistance and 5266 a crucial support for if the index breaches 5266, it will slide sharply. So, keep an eye on these two levels i.e. 5330 and 5266—the next trend deciders. We continue to maintain our short-term bias down with the reversal above 5330.
Nifty Closed 5290
Nifty Support 5220/5187/5150
Nifty Resistance 5310/5330/5470
- Buy BHEL 2420 SL 2408 TGT 2438/2448
- Buy Patni 551 SL 546 TGT 557/562
- Buy RCOM 170 SL 167 TGT 175/178
- Buy ACC 944 SL 938 TGT 952/957
