Saturday, February 19, 2011

Nifty Update

Nifty ended the week down 87pts on the last day of the week back again to near 5450 levels with fears of the 2G probe widening. As mentioned in the previous post these levels can be used for buying into the markets again with an appropriate sl. With the budget and expiry near the corner one can expect some wild and volatile gyrations in the market.
The short term view however remains up with prices in most of the stocks hammered absolutely out of proportion (the way stocks are beaten in a bear market).
Option writing and open interest suggest support at 5400 and resistance at 5600 for this expiry.

Current level 5460
Final Call???
Buy nifty with sl at 5380 for tgt1 of 5740

Risk = 80 points  Reward = 280 points

2 comments:

  1. the only fact that there is gap around 3800 make u believe the market will breach these levels or there r any other reasons for the fall
    my gmail is ankitjain502000@gmail.com
    pls do tell it might be really helpfull for layman like us

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  2. @ankit
    there are several reasons technically as well as fundamentally that point out and signal to the pending fall in the markets. you can view the big bang post posted on the blog where i have laid down some of them in a very simple way for everyone to understand. if you have any query even after reading the post feel free to ask.

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