The Nifty weekly chart shows that the key support level of 4720 has been respected with Nifty bouncing back after making low of 4728.50. Nifty above 4835 levels could reach levels of 4870/4915 on the upside in the short term. The overall direction of the market is likely to remain weak as NIFTY has given a breakdown from the important trend-line support of 5430/5440 on both daily and weekly chart. On monthly chart, according to rising demand line (Joining from the lows of Aug 2009 (4353.45) to the low of May 2011(5328.70), breakout of 5480/5490 levels would indicate selling pressure. Any move beyond 5480/5490 level on monthly basis would only negate the bearish view.
Day Trading Strategy
Nifty may open flat to negative note and it would remain range bound between 4845 and 4755 levels. Breakout of either level would dictate the intraday trend. On the higher side, if NIFTY trades above 4845, it could test at 4880/4920 levels. On the downside break below the major support of 4720 levels of 4690/4640 levels can be expected. Traders are advised to remain cautious due to uncertainty and volatility in the global markets. Investors will keep a close eye on inflation numbers due later today.
Day Trading Strategy
Nifty may open flat to negative note and it would remain range bound between 4845 and 4755 levels. Breakout of either level would dictate the intraday trend. On the higher side, if NIFTY trades above 4845, it could test at 4880/4920 levels. On the downside break below the major support of 4720 levels of 4690/4640 levels can be expected. Traders are advised to remain cautious due to uncertainty and volatility in the global markets. Investors will keep a close eye on inflation numbers due later today.
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