Hello,
Yesterday finally after a long time in hibernation, Nifty made the breakout that was anticipated from a pretty long time. Breadth was ok with NSE recording 845 advancers vs. 514 declines. Generally first stocks to breakout are Index stocks and only later on during the rally do mid-cap stock join the rally.
Market yesterday stalled at a very important level that I had mentioned yesterday - 5540. This level is a very crucial level in many ways. One is the fact that this level coincides with the top of the channel. With the channel running for more than 8 months, a reversal here can lead us back to either the mid way point or even the lower end of the channel. Secondly 5540 also is the top of the first retracement that happened way back in 2008 (February).
Last time we encountered such resistance was in April when we tested a similar resistance from the high of May 08 and a level which co-incidentally also was the top of the channel that was getting formed. As one can remember, markets fell steadily until we touched the lower end of the channel.
Maintain Long positions in Nifty with a stop below 5450.
Regards
Prashanth
Mythri Stocks & Shares Pvt Ltd.,
No comments:
Post a Comment