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We
expect range-bound trading activity to continue
till such time the Nifty decisively crosses
5300-mark. As of now, the oscillation of Nifty
price movements would be between 5130 and 5235
unless there are major international cues
influencing any directional movement.
On the way up from here, the level of 5235 is a
big area of concern for the bulls. Not just
that, from 5217 through 5304, the Nifty is
likely to find whole host of levels bringing in
fresh supplies. First, it would, of course, be
5235 then the next such problems areas would be
found at 5259, 5285 and 5304. All these are
potential resistance levels for the Nifty.
On the downside, the level of 5189, 5170, 5151
and 5144 are good support levels. Unless the
index falls below 5130, there would not be any
major directional swing possibilities and the
Nifty would retain its potential to bounce back.
International cues from US market do not suggest
any major gumption in the equity markets;
however, we need to be watchful of S&P 500's
critical level of 1120; if it fails to clear
1120 and starts losing momentum we might well
see weakness in equity markets coming back.
Rajat K Bose |
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All prices relate to the NSE, unless otherwise mentioned. |
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Stop-loss levels are given so that there is a level below/above, which the market will tell us that the call has gone wrong. Stop-loss is an essential risk control mechanism; it should always be there. |
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Book, at least, part profits when the prices reach their targets; if you continue to hold on to positions then use trailing stops to lock in your profits. |
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Don't chase a stock, if you are unable to buy a stock because it hits circuit levels on successive days, don't buy that. |
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The analyst and his clients may or may not have positions in the securities mentioned above. |
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Trading involves considerable risk. Trade at your own risk to the extent you are comfortable. The analyst shall not be responsible for any losses incurred for acting on these
recommendations. |
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