U-Turn of Subramanian Swamy fuelled rally in Indian markets yesterday.
Janata Party President Subramanian Swamy, who is the chief petitioner in the 2G Spectrum case, on Monday told the Supreme Court that there was no malafide on the part of the Prime Minister, Dr Manmohan Singh
In an affidavit filed yesterday, Swamy said: "There was no malafide on the part of the Prime Minister. The Prime Minister was badly advised by law officers, the Law Ministry and bureaucrats."
Earlier yesterday, before filing his affidavit, Swamy said the Prime Minister was sabotaged by his bureaucrats, as the files just kept moving from one department to another.
Swamy had on November 18 said that the Prime Minister should stop acting helpless and take stringent actions against those responsible for the scam.
Last 2 sessions Indian markets moves dedicated to Subramanian Swamy in following manner;-
Swami November 18 statement created PM resignation fear and that led sharp declines on November 19 but as soon as above U Turn news of Subramanian Swamy'stand came out then fear of Prime Minister'resignation wiped out and Rally seen in Indian markets om November 22. Nifty tested top of 1st resistance and closed near it at 6010.00.
Yesterday intraday chart of Nifty from 02:10-03:30 pm wthin 5975-6020 is showing Rising Wedge(bearish) formations and it may pose resistance in the coming sessions. As this bearish formation seen within resistance range(5950-6015) therefore this resistance strengthened. Complete consolidations requires to cross 6015. I told many times yesterday and again repeating today:-
"Watch sustaning above 6015 for upmove confirmations"
Intraday Chart of 22-11-2010-
Nifty traded within 5910-6015 yesterday with buying at lower levels and selling at higher levels yesterday. Nifty will trade within yesterday range(5910-6015) today and coming couple of sessions intraday charts will decide break out or break down.
As good selling patterns at higher levels therefore down moves were seen and breaking down possibility of 5932 can not be ruled out. On the other hand 5932 gave strong support 4 times earlier therefore must be watched and until Nifty does not sustain below it till then its breaking down will not get confirmations.
Firstly trading within 5910-6015 will be seen after weak opening today and interpretations of mentioned range break out are as follows:-
1- Breaking out of 6015 will mean correction completion and market moving into range bound(5900-6339) mode.
2- Breaking down of 5910 will mean deeper correction and testing possibility of 200 Day EMA(today at 5515)
Whole day trading within 5910-6015 expected and finally Red closing expected today. Sustaing below 5975 will validate yesterday Rising Wedge and will give strong indication of break down of 5910.
(Lalit Kumar Dhingra)