WEAKNESS TO CONTINUE

Continuous profit taking and weak Asian clues.... market expected to gap down with support around NF 4464-4428-4412. Also 4412 is the first weekly support from where bounce is expected to 4500 level.... Today's pivot is 4531-4536. Strength only over NF 4536.

PROFIT TAKING TO CONTINUE

The daily and hourly charts showing negative divergence.... market expected to trickle down.. take pause. Weekly pivot is NF 4557 with 4678 as strength test and 4497 as weakness point. For today the strength will be only if NF trades over 4625 with support at 4552-4516. Could it be a top formation as this is becoming a strong supply zone .... only break of 4450-4361 will decide.... till then trade the range.

CONSOLIDATION

Market is looking tired at these levels after achieving the target of 4648. Caution required in buying at higher levels . May remain range bound. Today's pivot is NF 4638 with resistance at 4668 -4691 and support at 4818-4594. Strong over NS 4659 and weak below 4612 and break of yesterday's low can take it to 4550-4540

TARGET ACHIEVED

Nifty finally achieved its target of NS 4648 which is a very important achievement and closed over it. For upmove it has to trade over NS 4586-4611 and only resistance is in zone of 4750-4800. Today's pivot is NF 4646-4650 and cross of 4693 can take it to 4711-4725; support around 4629 and further at 4597. Market may like to consolidate around this level after major upmove.. so strategy should be to buy at low's or short at high point.

STRONG PULL BACK

Yesterday NF took support at the first level of 4381 and bounced sharply from there and cross of 4455-84 led to sharp covering by bears and nifty is now back in strong hands. FII's bought equity however they are selling stock futures giving a mixed signal.....may be Consolidation at this level with positive bias. Till then play the levels as over NF 4519-4586-4654-4722. Weakness below NF 4523-4502. Today's resistance is 4602-4627 and is strong as long as it trades over NF 4562

BREAK OF CRUCIAL SUPPORT

Yesterday ,nifty broke the crucial support of double bottom formed at 4451 and gave a strong sell signal. Now for any bounce 4451-4475 will be strong resistance for any bounce back. Today's pivot and resistance is 4483-93 with support in the zone of 4381-4328 from where a technical bounce is possible....

WEEKLY TECHNICALS

Last week, Nifty traded in range of 200points, so the weekly range will play an important part in the psychology of traders. Pivot for this week is NF 4561 for target 4646-4675 with break out over 4715. Weakness will continue as long as NF trades below 4537 and break down below 4484-4475. Remember strong resistance of NS 3648 (sensex 15580) and support of double bottom at 4451-4453

WAVE of OPTIMISM

Yesterday, nifty moved up after making a double bottom at 4453 and there was no looking back after the strength test of NF 4548 was crossed. My analysis is that this wave has been moving up after making double bottom at 2273-2963-3300-3534 and now at 4451, so one can keep S.L.of 4451 for any longs now... however, surprisingly FII's have been selling stock futures and now index future though buying in cash segment...means they are fully hedged. Yesterday, Open interest in Index future dropped dramatically inspite of increase in price showing profit taking or cutting of longs... there is no sell signal so far. Today's pivot is NF 4545 with strength over 4579 for target 4620-4657 . .. in case of any profit taking support at 4523-4508.

SUPPLY ZONE

Yesterday NF could not cross 4578 and tested 4475 zone. For today strength is only if NF trades over 4548 with pivot being 4531 and support around 4510-4483. Break of 4483 can take it to 4443-4434-4388. Probably a top of this wave (4586-4092) is formed and break of NS 4450 can lead to deeper correction.

BULLS STILL IN COMMAND

Nifty showing negative divergence yesterday, corrected by sideways movement with bulls even after breaking 4475 area managed to close much above it. .... for upmove sensex has to close over 14931. The pivot for this up move is now NF 4515 and strength is over 4534. Targets for today could be 4566 with resistance at 4602. Side ways movement likely. ... If NF stays below 4561.. one can short with S.L. of 4578-4582.