Nifty Technical Analysis

Wednesday Nifty opened with gap on upside and went to test the important level of 4950 and failed to cross that. Short term trend of Nifty is up now. Nifty intra day support was near 4920. Intra day  resistance for Nifty was near 4950. FMCG  stocks were strongest for the day. Global market trend was UP during  Indian stock market hours.

Observations:

  • Market is Overbought  in short term. Some stocks may face selling pressure tomorrow.
  • Nifty may test 50EMA which is 5050. Decisive closing above it is indication of  institutional interest.
  • Important support of 5000 level has been  broken decisively on Nifty.
  • 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 : 6.60

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

Intermediate trend of market will turn UP if market closes above 5290 & 17712 for Nifty & Sensex respectively.

Support levels for Nifty are  4840 ,  4800 , 4730 , 4 690 , 4650 , 4470,  4050 , 3300 .

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

Breakout  Stocks of the day : HDFC .

Nishant Kalaskar.

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This entry was posted on Wednesday, February 3rd, 2010 at 4:28 pm and is filed under Daily Updates. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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