Volatility to continue till expiry, Expect more intraday moves like one you saw today

At around 12:30 Nifty touched a low of 5053, when one was expecting more downside from 5053 strong support zone of 5010-5020 as all Asian markets were down 1-2% and especially Shanghai which was down 3%, Nifty snapped back and was into green territory within 2 hours of touching low. Meanwhile telecom stocks got some respite from everyday selling and as a result Bharti Airtel was the top gainer in Nifty. And our stock idea of yesterday ( NIITLTD ) was also up 5 %, I hope u enjoyed it.

Before: Recommended on 23/11/2009



After : Stock up 5 % the very next day




Nifty View: Nifty has a made a double top at 5113 level, so for any upmove to continue Bulls have to take out this first for the next target of 5180. On the downside 5050 ( today's low ), 5010-5020 and then 4950-4960. Though i don't expect markets to go below 50 dma before the expiry, 50 dma is at 4950


DowJones View: Now 10500 seems to be tough for bulls to cross that too with huge volumes, if 10500-10600 is not taken out by bulls within 3-5 days then expect 10100-10000 on DowJones. As u see in charts the volumes are decreasing day by day while the index is more or less at same levels


Stock view: KTK Bank Ktk Bank has remained a weak candidate ever since it touched 180 levels around Diwali. A close below 124-123 levels can take this stock to 114-115 where the 200 dma is placed and the stock has strong support there


Have a happy trading day!!!

Regards

Ankit