After extreme volatile day of trade, Nifty achieves first target of around 4780

After extreme volatility in the day, news from Finance Ministry that it is considering on lowering direct tax rates under new Direct tax code lifted the sentiments of market participants up. After taking cues from weak Asian Markets markets opened weak, and continued to slide further till it took support from 4600-4625 and bounced back sharply to the levels mentioned yesterday on the blog 4750-4780.

Nifty View:

Nifty as expected took support from 4625 levels and then bounced back to 4660 and then again came back to test 4600 and after that it never looked back. Nifty has also retraced back 38.2% of the entire fall which was 4784 which is almost completed. The next hurdle only comes at 50% of the entire fall which is placed at 4860 and the 50 day moving average at 4875.

0%- 4538,
38.2%- 4784,
50%-4860,
61.8%- 4936,
100% - 5182

So 4855-4875 will be very difficult to crossover, as i have three reasons to justify that

1. 50 day moving average at 4875
2. 50% retracement level at 4860
3. Last top made on 30th october is at 4853.65 after which Nifty fell 150 points from day's high

Stock View: IDFC

IDFC has been standing rock solid in last few days, when markets were falling like anything. It can be bought at current levels with a stop loss of 146.5 and with a target of 182




Have a wonderful trading day,

Regards

Ankit