Weekend Views On Nifty!!!

Nifty has had an eventful weak (pun intended), with Nortel scare and Satyam news still in focus (bailout no bailout? etc etc), it’s managed to close above the half way mark of the weekly bar. With the US markets closed on Monday and OBAMA stepping into the hot seat maybe the DOW will give a short rally next week. Monday should be a flat opening and a very zzzz type day! Apparently the only support on weekly is the one we just held up all along this week, now below that 2580 is the only hope or rather the line of Life!

The daily chart below has had a weak reversal of sorts (weak because there was lackluster volume on the up tick), the 50 periods MA is right on top at 2880 to stare Nifty down. Above that we have the 20 periods MA and the trend line resistances sitting pretty tight at 2930/40 odd levels. In fact right from 2880 to 2950 is ONE strong resistance band!

The hourly chart below is a very good example in showing these resistances along with the fib ratios as well as the MA’s. As regards to supports, we’ve have had some nice respite at 2750/80 during the intraday gyrations, so logically the bulls and the bears should be actively watching this to either hold or crack! Nothing more than a few intraday plays in Nifty as of now, and like they say THE SHOW MUST GO ON!

"Effort only fully releases its reward after a person refuses to quit." Napolean Hill