Retracement almost achieved targets, Now see rangebound movement before the next move

After touching a high of 4836 on Friday, Nifty almost completed the retracement target of 4860. Now the question is " Where are we headed after this pullback from oversold situation?? ". Meanwhile during this weekend our Prime Minister Manmohan Singh gave reassurances for a medium term target of 9% still on track and further said that government will wind down stimulus packages in 2010 that it gave this year.


Nifty View:

The answer to the above question asked is that we will see a range bound markets until we see a big move. The range is 4600 on down side and 4850-4900 on the upside. As there will be a lot of supply coming around 4850 levels as that is 50% retracement level of the recent fall and 4900 will act as a huge resistance for bulls to take out as this level acted as a huge support for the past few months.

Scenario 1 : If Nifty takes out 4850-4900 then next resistance comes out to be 5050 to 5100

Scenario 2 : If Nifty closes down below 4600 with huge volumes then next target may be around 4400 levels

Stock view: TITAN

The stock has always obeyed the trendline starting from July 2009 uptill now. The trendline also survived the recent crash and was not violated on closing basis, so it simply means that the trend of the stock is up until and unless it breaks this trendline (on closing basis )which is placed at 1240-1250 odd levels .


Stock View: Usha Martin

The stock has bounced back from very strong support zone of 59-60 levels, though not with huge volumes. If stays above this support zone can see a breakout above 75-80 levels. It is advised to accumulate this stock on every decline



Have a wonderful trading day

Regards

Ankit