Free Intraday Tips For 10 May 2010
The close which the bears were eyeing has come i.e. Nifty has posted a negative weekly close that too below its 20 weekly exponential moving average (WEMA), which I crucial level. The market catches cold with an overdose of VIX, which is a sign of trend reversal. The level to watch out now is the 200 daily simple moving average (DSMA), where it had taken a support earlier at 4675. The breadth remains in absolute control of the bears but the spike in volumes is yet to be seen. The 20 weekly exponential moving average (WEMA) is currently pegged at 5121, which is a crucial resistance on the upside, whereas 4961 is the crucial support zone area i.e. 200DSMA. On the hourly charts, an ending diagonal is observed in wave v, so there is a possibility that Nifty jumps back from here in its wave IV up, but it should be used as another selling opportunity only as it has a resistance at 5202 level, which is the low of wave I. Hence, we continue to maintain our short-term bias down.
Nifty Close 5018
Nifty Support 4961-4900-4830
Nifty Resistance 5060-5120-5200
- Buy TCS Above 753 SL 741 TGT 768
- Sell DLF Below 281 SL 286 TGT 275
- Buy SBI Above 2252 SL 2223 TGT 2290
- Buy Reliance Infra Above 995 SL 980 TGT 1015
