February 8, 2010 - Nifty Technical Analysis

Monday ,Nifty witnessed short covering bellow 4700 . Nifty established 4700 as intra day support. Intra day  resistance for Nifty was near 4800. IT  stocks were strongest for the day. Global market trend was mix during  Indian stock market hours.

Observations:

  • All global markets including Indian market are in strong downtrend. (ADX(14) >30). Investors should protect their capital.
  • Intra day rallies  might  be used for loss booking  by trapped bulls.
  • 4500 zone on Nifty is an important target for this downtrend.
  • Intermediate trend of market will turn UP if market closes above 4950 & 16553 for Nifty & Sensex respectively.
  • The fall  in Nifty from 19  Jan 2010 is the sharpest in last four months.
  • 4650 important support for Nifty. Its 200 day average price of Nifty.

Market Technicals:

Market Breadth : 1.10

Market Trends : Short  term trend of market is down. Intermediate trend is DOWN.

Intermediate trend of market will turn UP if market closes above 4950 & 16553 for Nifty & Sensex respectively.

Support levels for Nifty are 4730 ,4690 , 4650 , 4470, 4050 , 3300 .

Resistance levels for Nifty are 4800 , 4840 ,4945 , 4985 , 5180 , 5130 ,5240 , 5330 , 5570.

Breakout  Stocks of the day : LIC Hsg. Fin.

- Nishant Kalaskar.

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