Market Diary 6 March, 2007

NIFTY FUTURES :(Tommrow Buying could Be witnessed).
Nifty Futures Reading :The fall in Nifty Futures is continued in the beginning of the week with 90 points downward opening price gap at 3600. Nifty Futures tested the support level of 3550 in intraday but was not able to breach 3600 level upwards and closed negatively below 3550 at 3532*. The low of the day was at 3515 and it is crucial level in the opening session as Nifty Futures lost 158 points on closing basis.5th March was Timing Cycle Day and generally a trend reversal is seen on this day or on next day. To conclude the short- term trend reversal, Nifty Futures is expected to cross 3600 level comfortably. The immediate resistance is 42 points price gap are between 3628 and 3670 level as shown in the chart. Above this level, the uptrend can be labeled as 4th internal wave with a strong resistance at 3850 level.Due to global market impact, if Nifty Futures opened on a weak note below 3515 then strong buying can be seen near 3450 level as a cluster of 2 important retracement levels and 2.618 ratio of the 1st downtrend is coinciding near this level. By keeping stop loss as 3400, one can partially invest in a fundamentally sound stocks.Only 3 stocks closed in a positive out of 157 stocks of F&O section and in Nifty50 only 2 stocks advanced indicating the severity of the fall. The RSI on daily chart has entered oversold zone but yet to trigger the buy signal. One thing to be observed in current fall is visibility of many price gaps in the downtrend suggesting losing grip of bulls over a mid-term prospect.

Nifty Futures Approaching Towards Strong Support Zone below 3500 – 3450.

Nifty Futures Trade Levels Stop Loss.

Sell Nifty Futures 3620 - 3630 3640.
Buy Nifty Futures 3490 - 3480 3470.