As expected has yesterday market moved up with small gap up, but as stated yesterday if it trades above 5810 for some time it will make move to 5840, which it did. I expected resistance at this area as it is near 200 DMA, but stated that if it crosses it is going to make good move as it has been very strong support area, but no one expected such a huge and wild rally and has reached 5910 which is near to next resistance level.
Nifty spot's 5920 which is 50% retracement will act as strong resistance and so 5910 to 5925 will be a strong resistance and is not easy to breach. If Nifty breaches this level on closing basis the next resistance level will be 5973 which it is unlikely to reach in few days, but the under current is strong and we may see this level next week if events support this.
Today we may see small gap down because of international markets and the next support area will be 5881 which has been support area before, if it trades below this level for some time we could see market going further down to 5860 levels. Market is looking overbought and we could see some profit booking today and also coincided with Friday. The trade for the day is downward bias, but be prepared for a move to higher levels also..
Stocks for the day
Mcdowell - Looking weak
Ongc - Technically and fundatmentally very bullish
Axis Bank - Looking very strong and has found support at 1000
Bajaj Auto - At 52 week high and can be traded either way if it faces resistance
Sun Pharma - Above 610.5 it is looking very strong
Will post levels later in live market.
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