Nifty - Volatile Within 5200-5300
The Nifty lost 57 points over the day to close at 5205. On
account of the newsflow late last Friday the markets opened gapdown
yesterday and attempted a recovery in the first half that
was short-lived leading to weakness in the second half. In the
recent past we have seen that every time the Nifty has
approached the 5270-5300 zone selling pressure has been seen.
We have ourselves been pointing out that the indices are likely to
correct from around the Jan ’10 highs before a new breakout is
witnessed. Technically, the trading action yesterday was healthy
as it helped the daily indicators in moving away from highly
overbought zones. However the oscillator studies have a sell
trigger along with divergence that could lead to some more
pullback in the near term. The immediate support to be watched
on the indices stand at 17250/5160 where we shall look for fresh
bullish triggers. A 38% retracement of the recent rally takes the
Nifty down to the 5090-5100 support zone, which looks like the
worst-case possibility. Overall, the index is likely to stay volatile
within the 5200-5300 zone.
Re: Nifty - Volatile Within 5200-5300
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