Once Again We Succeed As Usual

JAY SWAMINARAYAN

We said   “   Nifty will be traded with negative bias below 5120 and it would be decline towards 5030 – 4940. Other hand above 5120 Nifty will be traded with positive bias and it would be tries to test 5210 – 5300.   We suggested    Strategy:    [1]  Open short below 5120 with stop loss 5210 for targets 5030 – 4940.   [2]  Open long above 5120 with stop loss 5030 for targets 5210 – 5300.

Nifty opened with bear gape and traded expected. On Monday Nifty opened significantly lower and declined below 5000 straight away, anyhow after Finance Minister postponed the enforcement of GAAR (General Anti-Avoidance Rules) by one year Nifty bounce sharply from the lows towards our shorting level 5120 but not succeed to close above it. So next day Nifty again declined sharp and achieved our both down side targets in 2^nd half of the week and registered low of 4906. Nifty lost 157 points ( - 3.11 % ) and closed in red.

                                                      Once Again We Succeed

Ø  We warned you in our 15-04-2012 weekly review  when Nifty closed at 5207,  

Ø  After 27-01-2012 first time Nifty gave weekly close below 5210 and this is bearish sign for market. If RBI cuts CRR or Interest Rate ( or both ) on Tuesday as per market expectation than market take it positively and Nifty should survive otherwise ????? We may see level of 5030 in next 1-2 weeks.   “ 

                                                          Our Success

       The market surprised positively by RBI on the account of 0.50 basis points Rate cut ( Umeed se Doguna ) On 17-04-2012 even after that Nifty gained only 100 points. Nifty declined sharp after gave weekly close once again below 5210 and registered low at 4907 on 11-05-2012.

o   Remember Nifty not gone below 5135 since last 10 weeks when we warned you.

                                                        For This Week

We expect Nifty will be traded with negative bias below 4940 and it would be decline towards 4850 – 4760. Other hand above 4940 Nifty will be traded with positive bias and it would be tries to test 5030 – 5120.  Nifty have 1^st Sup. at 4900 – 4850 & 2^nd Sup. at 4810 – 4760 and Nifty find 1^st Res. at 4940 – 4990 & 2^nd Res. At 5030 – 5080.

Ø  Between 4850 – 4760 Nifty should be find strong support, so if Nifty comes between this level than open long with stop loss 4670. Between 5030 – 5120 Nifty should be find strong resistance, so if Nifty comes between this level than open short with stop loss 5210.

Strategy:

[1]  Open short below 4940 with stop loss 5030 for targets 4850 – 4760. 

           

[2]  Open long above 4940 with stop loss 4850 for targets 5030 – 5120.

                       

NIFTY :: OP = 5017.80 , HI = 5124.75 , LO = 4906.15 , CL = 4928.90.