Market Review for 29 Jan 2010
Nifty opened in green with support from positive global cues. However, it traded quite volatile in today’s session, as it broke yesterday’s low of 4833 but bounced back. The index has given a positive daily close after six days of consecutive lower lows, signaling that there is probability of a pullback in wave iv up which will be 23.6-38.2% retracement of the fall from 5293 to 4825. The volumes are increasing day on day with falling prices, clearly indicating that the trend has reversed. Though a pullback is expected, we maintain our bias down as it will be just a dead cat bounce after which wave v shall ensue, which will take Nifty below 4825-level. Nifty (February) future has turned into premium of 4.80 points from a discount of 9.4 points and Nifty future started the series with 2.87 crore shares in open interest. Market wide rollover was 82.61% whereas rollover in Nifty futures was 76.53 %. Total open interest in the market was Rs85,499 crore and Rs44,697 crore were reduced in open interest.
Nifty Spot Closed 4867
Nifty Support Levels 4825-4745-4700
Nifty Resistance Levels 4938-5008-5062
- Sell Indian Bank 178-179 SL 186 TGT 168-158
- Buy TCS Above 752 SL 743 TGT 766-772
- Buy L&T Above 1455 SL 1429 TGT 1488-1508
- Buy Tata Steel Above 596 SL 587 TGT 607-613
