Market Review for 3 Feb 2010

February 2, 2010 by

The Nifty opened well above 4900 but did not sustain at that level for long and finally slid to the lower end of 4800 in the second half of the day’s session. It had formed an inverse head-and-shoulder pattern which failed to put further pressure on the index. Now 4766 is a crucial support for the Nifty as below that level the gates for lower targets will be opened. This recent sell-off can be the wave B of the three-wave corrective rally and till 4766 is held, the probability of a wave C up is quite likely. Hence, till 4766 is held we maintain our bias up for the target of the 38.2% retracement level 5070 & 5123.

Nifty Fut  Closed 4818

Nifty Support  4720-4780

Nifty Resistance 4850-4920

  1. Buy TCS above 750 SL 742 TGT 765
  2. Sell Tata Steel Below 565 SL 573 TGT 552
  3. Sell Welspun Gujrat  Between 261-262 SL 266 TGT 253-248
  4. Buy Infosys Above 2475 SL 2445 TGT 2525

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