VOLATILITY AT PEAK.....

Yesterday's ' Evening Doji Star' is now followed by 'Inverted Hammer' means shorts are being covered at bottom which led to "V" shape recovery. We are in last phase of bottom formation where buying will emerge vigorously at bottom. Its getting difficult to call the bottom but the range should now be NF 3420 to 2990 for next few days. Market has to close over NF 3512 for any upside momentum. Pivot for today is NF 3250 with Resistance at NF 3361-3431 and support at NF 3219-3149.

COUNTERATTACK BEARS.....

Any effort by Bulls is being fizzled out by strong Bears. 'Evening Doji Star' in daily chart yesterday is a matter of concern as it means more bearishness to come. Also we have formed Gap Down Island in sensex at level of 11374-11434. Only after overcoming this island, we can see some relief. Today, Gap down opening will see short covering in NF. Support around NF 3217-3167-3132 for today.Resistance for the UP rally will be NF 4287-4532.

UNSUSTAINABLE RALLY..

Gap up opening could not be sustained as the buyers are still nervous. Yesterday, FII's turned net buyers in equity after more than a month. Normally after capitulation, market needs to find a bottom which could be either retest of lows or around 3167-3064. Today looks like a soft day with support around NF 3450-3388; resistance for upmove is NF 3558. Avoid buying for today.

SMART RECOVERY TO CONTINUE.....

Bulls trying to tell: "We are DOWN, but not OUT". Yesterday, market rallied up smoothly from severly oversold region, absorbing all the sales and overcoming resistances. Bias remain positive today with target of NF 3615- 3674- 3715. Strong resistance at NF 3758. Support for this wave will be at NF 3487.

DEAD CAT BOUNCE LIKELY.....

The Bears attack last week broke the Bulls Pockets as well as Spirit with all the stocks getting capitulated to unimaginary levels. A technical pull back rally likely with NF target as 3564-3632 in next two days. Bullish Pivot for today remains NF 3310. This is going to be just a bounce from oversold region. No Buy signal has been generated so far.

MARKET WANTS TO SINK.....

Mercury Retrograde in Astrological charts is playing havoc breaking all supports inspite of all collective Global help. I expect the volatility to reduce from 15th october and serious buying to emerge from 3rd Nov. Support for the DAY NF 3217 - 3160. When Fundamentals and Technicals don't help, then only hope is astrological changes.

INDECISION PREVAILS.......

Market trading in downward sloping channel with lower tops and lower bottom formation. Strength will only be seen if market trades over NF 3615. U.S. & Asian markets are not giving any positive clue. Stability can come around NF 3504 . Sharp bounce back expected around NF 3477-57. Take care as Bulls are getting active at lower levels.

BULLS ON BACK SEAT.....

Important level of NS 3800 broken technically in close with Bears taking the full grip of the market. NF gapped down 3838 to 3758 (watch this level for future resistance)
Bounce back likely from oversold levels as well as with news of Policy changes and CRR rate cut. Over NF 3668- next level NF 3721 and 3752.
Take care as this will be just a pull back rally as the down trend continues.
Stop loss for longs is NF 3584 (in coming days) as below it can slide to NF 3473- 3353-3267.

SLIDE CONTINUES....

Nifty Future below 3868 can slide to 3764-3705-3645. Avoid bottom fishing as this trend can continue till tomorrow morning before a bounce back happens

NIFTY TARGETS

Nifty in a strong DOWN TREND with first Target of 3618