The Italics are the comments from yesterday.
We had a steep fall in the markets on high volumes today.The markets put in a 3 I day today and we would watch for the lows of the day to be made in the first 60-90 minutes of trading tomorrow.
Bank Nifty :
– The pull back rally high is 11150 ( adjusted for Mar).
– The poor lows created around 10800(-40) gave way today.
– 10616 is the upper end of the minus development zone from 11/2.
– Positions can be carried below 10616 for 10165 with a closing stop at 10830 for a 450 point move.
-Only 10400 is a minor support below 10616
– again a trend day with a difference.
– Index opened below value and range and continued to auction lower.
-Poor lows at 10200
– support zone at 10160 close by ( to be watched at the open)
-risk -reward does not favor new shorts here.
-10560 is the pull back high above which short term trend changes to up.
– Markets broke both support levels mentioned.
-5367 is the top of the minus development region from 11/2.
-Below 5367 we can see 5229 all over again and a possible 4975.
– Like the BankNifty, the Nifty also moved swiftly through the minus development region.
-With two minus development regions back to back the odds increase of a rotation in the 5250-5375 zone to fill up the volume and form a distribution curve.
– lower side support is 5229
-upper side resistance is the pull back high of 5391.
– New selling will emerge only below 2720-2680 level.
– As a leader of the rally, we wait to see if it confirms a break early below lows for 2514 as a target.
-Holding the lows it may consolidate upto 2662.
– SBI opened in the spike area of Wednesday and continued lower.
– 2514 almost done. is a good support zone.
– Holding 2514, is expected to rotate to 2644.
– An inside day today in RIL.
– a break of 986/ 1016 can give 20 points either direction.
– Inside day broke to the downside and hit 966.
– 966 represents upper end of the prior bracket, as also gap fill.
– One can take a long position here for 991/1010 with a stop at 952.