Markets for 4th aug 2010


The Market position of 4th august 2010

It was another lack luster day, with nifty after the gap up opening salute to dows overnight 200 point rise, continuously fell from the days opening high of 5459 to an intraday low of 5426, only to see some face saving rear guard action by the snoring bulls to take nifty towards last hour high of 5445 to have a flattish close around 5439.this pattern of sluggish move not even allowing nifty traders to make much during the day, clearly suggests that bulls are perhaps preserving their energy for the real show of strength shortly. what is more depressing is that indias emerging as well as bricks partner brazil had consecutive 11 days of +ve days, a rare feet which indian markets now under the complete control of external operators, may take many more months to achieve. although some individual stocks like half paralyzed reliance showed some burping action, yet with the patten tank tata steel stalling for the day after crossing 550, ensured that nifty too stalls with it.

For wednesdays trading, the opening will again be dependent on the rest of the world markets, specially asian markets. nifty most likely will be confined within a very narrow range of 20 points with the high of 5445 and low of 5425 & a decisive breach of this range may at the most see another 20 point move in the direction of breach. as can be seen in the hourly chart above, nifty spot has intraday support around 5426 below which it may generate some unwilling cheers for the bears to see another fall of about 10 to 12 points towards 5414 or towards 2nd august trading low of 5405. the beginning of the mondays gap downwards from 5405 will pull the bulls out of their long sleep to come charging in to drive away the bears before the bears plan to encroach sub 5400 levels.

Similarly on the higher side, only a decisive cross over of 5447 can threaten the lazy bears who may plan to cover their shorts, as a cross over of 5447 spot can catapult nifty towards 23rd july high of 5477 surpassing with ease rest of the minor porcupine sting type highs of 5459 & 5466 on the way. although not visible in the hourly chart above, the 30 minute chart of spot nifty between 2 pm & 3.30 pm presents a good 3 in 1 out side bar setup with the high & low of the mother bar being 5445 & 5430.so a decisive breach and close of a 30 minute bar above or below the setup may offer intraday traders make some gains although operators always eye for such setups to trap traders. irrespective of the sluggish move of the indices, some individual stocks in the sectors of oil & gas, metals, pharma & banks may display astounding moves to baffle the passive traders who may keep on uttering time & again the daily common sentence " what the hell is happening to indian markets"


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