Thursday, June 16, 2011

#28 Nifty Update

NIFTY opened down with a gap as all the foreign markets were down by almost 1%. Jobless data in US and Greece president resigning were 2 major news which made foreign markets cry. Highly awaited RBI policy came as per the marketers expectations i.e., hike of 25 bps. This hike was already discounted in the market. After the policy NIFTY was confused as a student answering the Math multiple choice question which way to choose. Reliance on one hand was dragging NIFTY down while SBIN and BANK Index were making the move strong. Ultimately NIFTY broke down our support of 5400 and closed below that. Now our head and shoulder support is breached and confirmation of the same can be only attained if NIFTY tomorrow closes below 5442. But if NIFTY opens negative then we may see levels of 5360 which is a rounding completion or 5320 which may create a possible double bottom. So strategy for NIFTY is wait and watch for the two crucial supports of 5360 and 5320.

NIFTY levels for 17th June:-
R-5449     S-5380               
R-5476     S-5367
R-5505     S-5337
R-5547     S-5300

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