Saturday, July 18, 2009

Weekly Technical View by Tanmay G Purohit:

Nifty (4375) rose for 4 days on trot after Monday to close up by 9.27% this week and recouped almost all of the previous week losses. 3900-3930 was minimum target for downmove and Nifty took U-turn from that place. Sustained move past 4500 will negate the bearish H&S formation and we will have to assume that the trend is still up, but for now it is trading in a broadening triangle which indicates large swings on both sides. Nifty breaking 4200 this week will be negative and caution is advised if 4100 is taken out. Because I had a cautious view, we could not catch the 400+ point move on Nifty this week but market is always supreme and we have to obey its orders as no one can dictate terms here. Many ask when Nifty will correct to 3600 so that we can buy - the point is one should not worry much about index movement. When there are opportunities, we should buy. Buying value gives us margin of safety and caution is being advised because a bit of risk management will only improve the total returns of the portfolio. 

Support: 4280/4210/4100
Resistance: 4440/4510/4630

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