Nifty(4832): The day was ranged between important supports of 4725 and resistance of 4866 though an erratic and volatile day with a mildly positive finish. Now given the global euphoria about cheaper dollar swap lines, Nifty is very likely to take the double three corrective outlined here in yesterday’s technicals.

The resistance at 4980 is going to become important today, and if by some chance markets exceed 5000, It would do a world of good from a contrarian point  of view- weak bears would fold, fundamental traders would think the low at 4640 was THE LOW and world would  become a better a place because the central bankers “solved” the problem of insolvency with cheap credit!!!!

The level of 5065 is the level of a previous fourth (red horizontal line on chart), most corrections end around the previous fourth or slightly below. The volume footprint has left 5015 and 5040 as important levels for market activity. So be aware that the zone of 5015-5065 is a big resistance cluster. So those of you who have been saying you are high risk traders in the comment section, this is the zone you need to step up and stand in front of the market.

Open positions:

Same as yesterday. Hero Honda if it comes to 2130 (unlikely) do not close, the stop is likely to get revised to 2195 and we may stay on for the bigger trade to 1750-1400.