Happy New year to all traders!!! NIFTY can’t have given you better beginning than this. Rather we can say Europe made our Diwali. Now you might be thinking what next on NIFTY?? NIFTY chart has turned towards bullish counter after good sessions last week. MACD has been showing strong positions of the bulls. We could see “Double Bottom” breakout on the NIFTY at 5172 which I had been mentioning as a important level before my break from Blog. Now we have two strong resistance at 5450 which is a trend-line resistance from previous tops and then at 5610-5624 which is the tgt for double bottom breakout and important resistance line two. We may see a pull back once from 5450 to 5200 to fill up the gap and then nifty might rally towards 5610. Stochastic has already reached the overbought zone while RSI has been approaching overbought zone. Keeping the technical aside, we have positive news flowing in the market. Greece debt has given 50% hair-cut. Its sounds good but is it really the way to bailout the debt?? Want it affect the bank who wrote off?? And remember only Greece Problem is solved but still other PIIGS countries are in trouble. This may be a temporary positive blow in the market from the foreign side. Talking about Indian growth story, we still have High food inflation while other factors have started cooling-off. It is expected that IIP will be better off now and inflation will start cooling off in coming quarters. Bank rate hike cycle has been at peak and RBI has signaled that there want be any further hikes in December but you never know them. So hold your longs and short term investors can book profits around 5450 levels and get back at 5200 levels.
NIFTY levels for 31st October:
R-5408,5448,5472,5508
S-5339,5280,5239,5200
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