Markets Nearing Trend Deciding Zone
Chart Courtesy: www.icharts.in
Sturdy 4570 levels
Nifty closes the week at 4680 on a positive note aided by revival in Chinese markets during the last session of this trading week. Currently, Nifty seems to be in a narrow trading range of 4570 to 4750 levels. It is significant to mention over here that the Nifty took support at 4570 level for 4 times during last 10 sessions, clearly confirming the view that these are the levels to be watched out for the downside support for short term traders.
Crucial 4350-4400 Zone
Over medium term basis, Nifty could be broadly trading in 4350 to 4750 range. The significance of Nifty 4350 to 4400 comes from the fact that markets took downside support for 8 times during mid August 2009. This forms as a crucial levels to be watched out for bulls, below which it would be advisable to play safe and exit or book partial profits. Below 4350 levels, bears are expected to take control of the situation for some time to come once the levels are taken out on the downside.
Resistant 4750 Zone
Nifty 4730-4750 continues to act as a strong Resistance for the markets to cross over. Above 4750, a quick burst to 4800-4850 can't be ruled out. If global markets stay sound & steady with upward bias for some more time, it wont be much before we see bulls crossing this crucial indicator at 4750 mark.
1) Below 4570: Short term Traders be Cautious on Long Positions
2) Below 4350: Book Partial Profits / Exit Partial Longs
3) Above 4750: Hold Trading / Investment Positions
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