No Signs of Recovery !?
Today Nifty has closed at 5036 which is a new low. In earlier trading sessions, even though Nifty was below 5000 it managed to close at 5073. Closing at 5036 may indicate that bears are dominating the market. Momentum indicators like MACD, Stochastics and trend indicator Parabolic SAR are -ve and there is no signs of a pullback in the market. Those who bought call option based on the intuition(but not on evidence) will be under great loss. Buy Nifty only if it closes above 5200. Closing below 5490 will bring the market to 4800.
Nifty Intraday Levels : Buy above 5086 tgt 5105-5158
Sell below 4986 tgt 4967-4914
(Above mentioned are spot levels)
M&M
M&M has reached very important resistance level. The importance of this falling trend line is high as it is formed from November 2010 and M&M has tested this trend line many times but failed to breach it. Stochastics has reached overbought level and bearish engulfing pattern of candlestick shows that one can short M&M at current level for a target of Rs.720 keeping a stoploss above Rs.748.
