NIFTY: 21 May 2012: Intraday update – Still facing resistance @ 4930. Only a decisive cross can give you intraday opportunity to trade long. Else it is a dull market.

As of now we are in continuation of Friday’s recovery. It is just pausing @ 4930 resistance market with a high at 4933.35.

In actual sense, there is a zone of resistance which is 4930 to 4950. This zone will be very very critical if Nifty has to take one attempt above 5000 marks.

"I suggest wait- watch and then decide. There are chances that Nifty may looses stream in this zone. I am not opting trading right now. One must keep an eye on 4899 as an intraday support. Approximation basis – I may consider 4935-4950 to be watched as resistance. Nifty may try to form a ‘double top’ kind of patter on intraday chart."


Update @ 1:50 pm : - I said for zone of resistance 4930-4950. Many crucial retrenchments are falling in this zone. One such - 4945-61.80% from 4788.95 (of 5039 to 4789). Whole idea is that this levels might face some real stiff resistance and we need a decisive crossover. Charting might say a level to cross above 4930. Will it work? I am not sure. I am believing retrenchment signals.

(Note- its intraday strategy, daily charts are still giving signs of revivals. If daily chart has to be dull then first sign must come on hourly chart.)

You must read previous articles and watch above chart carefully to understand this article completely.

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Thanks & Regards,

Praveen Kumar

Mail id – Praveen@viecapital.com

Mobile number – 09893369889 

NIFTY: 21 May 2012: Already quoted for support @ 4790 and advised you not to short. Expect pause for 1-2 days more before fall. Nifty resistance @ 4930 < 4950. Support @ 4850-4837

You must read previous articles and watch above chart carefully to understand this article completely.

What was quoted yesterday?

I have already quoted few supports for Friday’s panic gap down. It has hit a low at 4788.95 and rebounded. It was just the support of 4790 to act. Do not count for few seconds’ trades below 4790. I would still like to focus on same technical support again and you should keep those in your mind.

Ratio analysis is suggesting few important levels.

• 4790 = 76.40% from 5630 against the rise from 4531 to 5630. We must be opening near to this one.
• 4766 = we have seen a vertical dip from 5125 to 4903 few days back. 61.80% further dip from 4903 will end up at 4766
• 4740 = which is the reaction of actionary wave from 5136 to 5379. Take 1.618 times from 5136 or 2.618 times from 5379. It will give us 4740.

Now for today, main question is about the magnitude of recovery.

I am expecting this recovery to continue but (strong but) we will have to see a dip from higher levels. We can expect this recovery to come near to 4930 < 4950.

We need a decisive cross above 4950 to bet for some revival on time frame. Trading resistance will be at 4930.

One must focus on follow up buying on the next day of recovery. Somehow I can sense selling from higher levels as long as we fail to close above 4950.

Depending on market condition we will release intraday updates too. Till that time, you can post your views also so that I can present better result for you.

(If you think that other readers should also read this article then recommend this on google by clicking g+ link given below).

Read www.viecapital.com for stocks views

Follow us on twitter a/c 'viecapital' to get intraday updates.

Thanks & Regards,

Praveen Kumar

Mail id – Praveen@viecapital.com

Mobile number – 09893369889