Nifty Recap For The Day !!!

We had a gap down today; this was expected since we had closed yesterday at the bottom of the intra day range. Plus the overnight cues from the Dow and the Asian markets were also pretty bad! Yesterday I had mentioned that 4620 is very crucial for the time being and we might witness some volatility there. Nifty opened gap down proceeded to make new lows. By the time Europe opened we were finished with making our base and started our laborious journey towards closing the gap. We finished the day with a little hammer on our hands. I would attribute this to short covering and not any fresh bargain buying. It looks like, now we have 4600 and 4800 levels, marked for play. Both need to be taken out decisively to further decide the direction of the trend. Index trading is becoming a little difficult, wiser would be to keep an eye on sector rotation and look to go longs in strong sectors.

"Problems cannot be solved at the same level of awareness that created them."

Albert Einstein

Hmm we need to go below 4620 to resolve that 4800 was no real support, or we need to go to 5000 to resolve that 4800 was indeed a strong support! I am saying this just because Einstien said we cant have same level of awareness!