Index Analysis Nifty (Spot): 5923.85 Analysis: After three days of steep down fall Nifty ended in green with mild gain of 4points. Being extremely oversold on very short term chart it gave a pull back from day’s low and ended with almost a hammer candle. Now one may consider this as a bullish signal but, traders should not forget the broader picture. We are in a short term down trend and most important formation of Head & Shoulder pattern. Another significant observation, Fibonacci projection that says it has already breached its 38% retracement of its last rally so; needless to say any up move towards 5950 & 5990(in extreme case) comes up with decent sell short opportunity for the bears. Yes we believe Nifty is headed towards 5850 and, if any counter wave takes place then 5950 & 5990 is there to defend the aggressive bulls. Nifty (Fut): 5938.30 Trading Strategy Buy above 6000 Target: 6040 SL: 5980 Sell below 5920 Target: 5880 SL: 5940 Bank Nifty (Spot): 12289.35 Analysis: After a recovery from day’s low 12197 Bank Nifty ended with a spinning top candle. We predicted 12150 as the immediate down side target for Bank Nifty so; still hold our stand and suggest everyone to remain bearish in this segment. Fresh weakness is seen in Axis Bank and ICICI Bank, which is a concern. Beside that we prefer down trending stocks for short selling, on rise around their respective resistance levels. Bank Nifty (Fut): 12310.30 Trading Strategy Buy above 12550 TGT:12650 SL:12500 Sell below 12250 TGT:12150 SL:12300
Posted on: Thu, 06 Jun 2013 04:46:42 +0000
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