Indian
equity benchmarks ended trade on Friday at a two-month low amidst worries about the winter
session of parliament and weakness in global markets. The Nifty fell from the important support level
of 5600 to 5750 and closed at 5574.05. Chances are after an initial weakness, we are likely to see some recovery
on monday….
The basis of such an expectation lies in the fact that the Nifty took strong support from the levels close to the 5600-mark. However, we maintain that, as of now, we can only expect some recovery since we have not seen the Nifty getting past the critical supply zone—on the way up—between 5656 and 5680. This range of 25 points can bring in a lot of fresh supply once again and only a successful absorbing of that probable supply pressure and the index sustaining above 5680 would signal the continuation of the recovery swing.Getting past the 5700-mark and closing above the 5715-level would mean the bulls recouped their lost strength .
The basis of such an expectation lies in the fact that the Nifty took strong support from the levels close to the 5600-mark. However, we maintain that, as of now, we can only expect some recovery since we have not seen the Nifty getting past the critical supply zone—on the way up—between 5656 and 5680. This range of 25 points can bring in a lot of fresh supply once again and only a successful absorbing of that probable supply pressure and the index sustaining above 5680 would signal the continuation of the recovery swing.Getting past the 5700-mark and closing above the 5715-level would mean the bulls recouped their lost strength .
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RESISTANCE:5700 5720, 5750
SUPPORT :5680, 5650,
5630
As per Federal bank technical research report one should go short in this counter. Federal bank is looking quite weak at current level and is expected to fall further. Positional traders can go short in Federal bank from current level for good gains.
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