Pre-Open Market Outlook(11-02-2011)
Most bullish begun 2011 lost 982 Nifty points in just only 28 sessions and all the trends turned negative as well Indian markets entered into Bear Phase also. Although Nifty could not suustained at higher levels and tested lowest point of strong support(5210) after sharp slipping as well as closed near it at 5226 yesterday but no intraday distribution formations and on the contrary whole day consolidation patterns seen. Genuine intraday consolidation patterns within 5200-5220 yesterday therefore this range will be first support now and if Nifty sustains above it today begining of Pre-Budget Pull Back Rally Possibility can not be ruled out.
Nifty intraday chart of 10-02-2011
(Just click on chart for its enlarged view)
Oscillators are showing positive divergence in oversold zone therefore an up move is due now and after yesterday intraday charts consolidation patterns Pull Back Rally may be seen but Indian markets have entered into Bear phase therefore minimum one resistance upward crossing is must for rally confirmation.Next resistance ranges are as follows:-
1- 5315-5365
2- 5400-5460
3- 5660-5780(Strong resistance)
Pull Back Rally from here may test 200-Day EMA(today at 5627) therefore this possibility should be kept in mind after Pull Back Rally confirmation. Opening will depend on Asian markets cues but sustaining beyond 5200-5220 should be watched first and crossing upward 5270 will be fresh up move confirmation.
Sustaining above 5220 and positive closing expected today.
