Just see what a day of short covering can do, As a result of which some key resistance levels were broken effortlessly

" 5180 " - the key dreaded level for Indian Markets should not be dreaded anymore. All indicators now showing that the big breakout is round the corner only, it can be today or next week. The short covering came with such huge volumes in Nifty futures that the volume today was almost double of what it was yesterday. Some key resistance levels like 5050-5070 were broken so effortlessly that it was surprising for many people. On this blog I constantly posted that there is a very good support around 4925-4935 and Nifty becomes weak only if it breaks this level on closing basis, Nifty's low was 4943 :) day before yesterday.


Nifty View:

There is no reason now for not crossing 5180, Nifty will fail in doing so if there is some major bad news coming our way. Now if there is any profit booking then the first support for Nifty comes out to be 5120-5125 and the next major support is 5070-5080. There still might be large amount of shorts in the system waiting to cover above the triple top of 5180, so above 5180 you can see levels of 5220-5250 in quick time.





Stock View: Gammon Infra

The stock is trading in the triangle since May 2009, having its very good base line ( green line )at 17-18. The Red line is the side of the Triangle which is difficult for stock to cross. Any closing above 20.5-21 with huge volumes can take this stock higher to 24-27. Dont buy till it doesnt cross and close above 20.5-21.



Have a nice trading day

Regards

Ankit