Pre-Open Market Outlook(05-10-2010)
Sentiment was highly bullish yesterday but I did not posted any bullish view for yesterday market but on the other hand:-
1- I told:- Voltality and Profit booking possibility can not be ruled out today.
2- I told in Mid-Session Outlook:- Weakness and some more down move possibility can not be ruled out.
3- NIFTY OCT F & O INTRADAY SHORTING CALL WAS GIVEN- THIS CALL WAS CONVERTED INTO POSITIONAL WITH FOLLOWING MESSAGE:-
"DOWN MOVE EXPECTED TOMORROW. WEAK CLOSING EXPECTED IN US MARKETS TODAY AND ALSO EXPECTED THAT ASIAN MARKETS WILL ALSO BE WEAK TOMORROW"
I told for only one possibility yesterday and exactly same was seen as well as Indian markets closed at the lowest of intraday trading range after whole day profit booking. Yesterday profit booking ranges are as follow and these will be minor resistances:-
1- 6205-6220
2- 6180-6195
3- 6160-6175
Yesterday candle is Shooting Star/Gravestone Doji (Bearish) and it is Low/Moderate reliability reversal pattern. Last(2008) resistance range of Nifty IS 5150-5357 and distribution was seen within above mentioned ranges yesterday therefore this resistance has become stronger and fresh consolidations are must to cross above mentioned all resistance ranges.
I told yesterday for US markets weak closing in the afternoon and US markets closing in mid night is as follows:-
1- Dow Jones closed- 78 points down.
2- NASDAQ closed- 26 points down.
3- S&P 500 closed- 9 points down.
We are prepared well in advance through our shorting trades for that correction and down moves which will be seen for our profit booking today. Trading will be in Red zone first within last Friday range after weak opening and negative closing is expected today.
(Lalit Kumar Dhingra)