14.01.2011 - 18:21

As expected market tanked to hit our 1st target of 5661 and closed below 5661 which is not a good sign. As Nifty have broken crucial support level of 5690 and closed well below that mark, it is suggested that any rise from here may be used to go short with a strict stop loss at 5875 mark. Alternatively go for covered positons only, as budget is nearing and markets are tend to be more volatile.

Going by the long term charts, Nifty has multiple support between 5300-5500 and even this is the area where Nifty met with lot of hurdles to take-off and finally it broke and tested the all time high of 6300+ levels. As again Nifty is inching towards those 5300-5500 mark. Will Nifty test those levels before BUDGET RALLY starts!!!!!!!!!!! ?

Some Important Support levels for you where Nifty is expected to react

5550-5399-5348

Some Important Resistance levels for you where Nifty is expected to reach

5839-5866-5875


Any investment decisions can be made when Nifty is nearing those crucial support levels.