Market Review For 5 Feb 2010
Nifty has reversed down sharply in today’s session after retracing almost 38.2% of the index’ fall from 5310 to 4766. The index is struggling to move above 21 weekly exponential moving average (WEMA), which is acting as a stiff resistance. On the hourly chart, the NSE bellwether has declined in a 5 wave’s pattern, which is an early sign that the next leg down may have begun. So, from here, 4951 remains a strong resistance and once Nifty breaks 4814 levels, the selling pressure will accelerate. The momentum indicators on the daily and weekly charts remained in sell mode continuously, whereas the hourly indicator too has reversed down, which again signifies that the pullback is over. Hence, we now change our short-term bias to sell with a reversal above 4951. Total open interest in the market was Rs106,687 crore and Rs1,111 crore were added in open interest. Nifty call option added 32.70 lakh shares in open interest, whereas put option added 11.05 lakh shares in open interest.
Nifty Closed 4845
Nifty Supports 4814/4766/4705
Nifty Resistance 4900/4951/4976
- Sell Hero Honda 1600-1605 SL 1621 TGT 1482-1468
- Sell Tech Mahindra 946-947 SL 961 TGT 932-924
- Sell Infosys if Breaks 2390 SL 2426 TGT 2340
- Sell Jp Associates if Breaks 129 SL 131.80 TGT 125-123
