Nifty(5098.35): The Asian region was strong, European and US futures higher and yet the Nifty faltered once again under the 5145-5177 zone. As mentioned yesterday, with a weak Rupee and 3 top heavyweights on Nifty under pressure, clearing above critical resistance was never an easy task. As should be expected, the momentum behind this move is also weak. Having said that, the thrust downwards at this moment is also lacking fire power. As can be seen from the chart below its a narrow triangulation between the bullish and bearish forces.
A move beyond these borders is needed for a decisive move.
Nifty short term:– While the range is 5160-5010, a break below 5040 would be an early indication that 5010 is about to go.
A couple of interesting points from the Global markets.
Yesterday’s high on the S&P and the Dow Industrials are exactly at the 61.8% fibonacci retracement of the entire decline from May. The french CAC too has paused at 38.2% fibonacci retracement of its fall from the summer highs and the DAX a few points above the 38.2% fibonacci retracement. Dr. Copper is just a few cents away from a perfect A = C wave relationship. While these levels are not fatalistic and markets need not halt here but it is interesting that we have such decision point levels right at the time when markets are at cross roads. A strong sell off for the US and European and US futures during the Asian session would be quite meaningful and would possibly signal a reversal is at hand.
Strategies yet to achieve their price objectives:
|Strategy||Security||Price Entry||Price Objective||Stop loss||Remarks|
|Larsen||Short||1397||1235,1105||1450; moved to 1400||Partial profit booked at 1331|
|Long||Ambuja Cem||154||170, 188||142 at a daily closing level|
|Short||Wipro||347||305, 290||365 at a daily closing level|
|TCS||Write 1150 Nov Call||Around 10-11||0|