Pre-Open Market Outlook(25-03-2011)
Technical positions,Supports,Resistances,F&O data and levels have already been discussed in "Post-closing Report(24-03-2011) & Tomorrow Outlook" yesterday therefore not being repeated today.
US markets closed with good gains yesterday and all the Asian markets are positive today morning,sentiment strong therefore positive opening and Nifty will first hover around 5550 and in the begining. Nifty will trade in last resistance range(5540-5580) and today follow up buying and consolidation will give confirmation to yesterday buying and consolidation.
Following lines were told in yesterday Pre-Open Outlook that
"Pennant formation in EOD chart and its break out will give first strong indication of next Indian markets moves and confirmation points will be sustaining beyong 5400 or 5600."
1- Pennant up side break out in EOD Chart:-
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| Just click on chart for its enlarged view |
Pennant up side break out seen yesterday and if Nifty sustains above trend line then it will be strong indication of rally and then market above 5600 will be expected.
Indian markets will participate Global markets rally after gap up opening and will trade in last resistance range today. Nifty retraced 2 times from 5600 in last 2 months therefore today intraday consolidation is must. Nifty sustaining above 5600 will mean worst is over and then fast rally toward 5900 will be seen after completion of correction.
Bullish sentiment is high and only cautious approach is required at the top of last 2 months range. Today consolidation and sustaining above 5580 will pave the way of Indian mrkets strong rally toward minimum 5900.