- Nifty Futures closed at 5705 which is 6 points higher from its previous close of 5699.
- Lower volume lackluster trading continues between 50 points range of 5730 & 5680 with directionless trend.
- After the RBI Policy announcement, it is expected that the direction of the intermediate trend will be clear i.e. breakout of 5750 or breakdown of 5640 is expected to happen.
- Once Nifty Futures closes above 5750, the upward target is placed at 5850 which is current high in very short span of time.
- But if breakdown of 5640 is materialized, then immediate target will be seen at 5550 which is 50% retracement level.
- On daily chart, symmetrical triangle structure is visible where sharp movements on either side are expected, hence trading is recommended after clear trend direction.
- In case of breach of 5640, the short selling can be initiated with the stop loss of 5700 for an immediate target 5550.
- The intraday resistance levels for Nifty are placed at 5750 & 5800 where as the intraday support levels are placed at 5640 & 5590 respectively.
Monday, October 29, 2012
30th October: Range bound trading to end after RBI Policy
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