Nifty Watch:- The Nifty opened at 5241. The Index made a low at 5180 with a 60 point decline, and then moved up to 5329 with a 149 point rally and finally closed at 5312 with a gain of 71 points to its open. As we have mentioned in yesterday newsletter about a big move. This 149 point move may give us some relief that the intermediate downtrend is going to take a break. But we will have to also look for a strong signal of bullish market.
Trend:- Today’s market remains in an intermediate downtrend. Market is trading below its 200 days and 50 days moving average. TA Insync (55-5) is heavily oversold in a strong downtrend. But it’s now turning up. This shows us a relief rally is very near to us. So wait for a strong signal of buying.
Level:- Looking for minor support at 5250 and major support at 5130. Resistance comes at 5400. Nifty is very near to its support level Today’s 149 point rally shows us that we are in a strong support level. So investors should hold their position and wait for a buying opportunity.
Summary:- The Nifty has come almost close to its support level. Therefore, investors should wait for a base building process. Investors should hold on to their cash. Wait for a strong base building process to start. That will give us a buying opportunity in the market.
The Market made two major highs - One in January 2008 and second in November 2010. Selected sectors crossed the 2008 highs in year 2010, while some sectors remained lower than the 2008 highs.
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