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.

LOOSING STRENGTH

Though Bulls are heading towards NS 4648 but the hourly charts are going in overbought state and showing negative divergence. Watch 14931 on sensex which needs to be surpassed. However trend is up as long as NF trades over 4515 for target 4561-4585 and strong resistance in zone 4602-4640 for this week. Any time trading below 4491-4483 will spoil the Bull's party.

HEADING TOWARDS RESISTANCE ZONE

Market likely to test its top of NS 4509.... will it surpass that needs to be watched. No shorts over NS 4510 as it may target NS 4648... weakness only below NF 4442. Today's pivot is NF 4434 for target 4493 and resistance 4515-32-52. Trade longs with tight stop loss.

CONTINUATION OF UP MOVE

Market likely to continue its upmove with profit taking around 4407-4418 if NS 4363 is crossed. Today's pivot is NF 4326 for target 4361-4386 with support around 4311-4286. NF has to trade over 4339 for target 4405.

EXPIRY DAY

Expiry day of settlement is likely to bring volatility. For today, NF 4252-4262 will act as a pendulum mean point for the market to swing either way. Support lies around 4222-4229 where the shorts were covered yesterday. No buy below NF 4208.

OVERSOLD IN HOURLY CHARTS

I had been writing 13500 level on Sensex and yesterday it came close to that level (13518) from where bounce back is likely. For today , NF is strong as long as it trades over 4159 for target 4203-4219. However, NF 4224-4234 will act as strength test ; over which the shorts are likely to be covered.

RANGE COMPRESSED

The range is getting compressed and should give a big move in a day or two.... but with settlement getting closer and FII's selling stock futures in huge quantity... one need to be careful. Today's pivot is NF 4241 for target 4261 and resistance at 4280 whereas support lies at 4223- 4203. NS is stuck in zone of 4224-4248 where maximum activity has taken place in last three days. Watch 13500 on sensex.

SIDE WAYS WITH PROFIT BOOKING

Market likely to open down with support in the range of NF 4224-4197. pivot for today is NF 4226 for target 4279-4307. NF 4308 is the pivot for this week which may offer resistance at this level. Range for today could be NS 4172-4302.... break out either side should give a big move.

CONTINUATION OF PATTERN

Rangebound trading seen with support in the zone of NF 4152-4174-4186 and upmove over NF 4237 with resistance at 4262-4287. Strong only over NF 4293.