Once Again We Succeed

JAY SWAMINARAYAN

We said   “   Nifty will be traded with negative bias below 5210 and it would be decline towards 5120 – 5030. Other hand above 5210 Nifty will be traded with positive bias and it would be tries to test 5300 – 5390.   “  We suggested    Strategy:   [1]  Open short below 5210 with stop loss 5300 for targets 5120 – 5030.   [2]  Open long above 5210 with stop loss 5120 for targets 5300 – 5390.

Nifty opened flat and traded expected. In first half Nifty tried to move up but once again it facing selling pressure near 5300. In 2^nd half Nifty turned back towards our shorting level and almost achieved our both down side targets. Nifty declined sharp below 5120 and registered weekly low of 5070. Nifty lost 122 points ( - 2.34 % ) and closed in red.

Once Again We Succeed

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

 “   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 5070 on 04-05-2012.

Nifty registered low of 4988 on 07-05-2012

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 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.  Nifty have 1^st Sup. at 5080 – 5030 & 2^nd Sup. at 4990 – 4940 and Nifty find 1^st Res. at 5120 – 5170 & 2^nd Res. At 5210 – 5260.

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 :: OP = 5201.45 , HI = 5279.60 , LO = 5070.60 , CL = 5086.85.