Finally Nifty did something rather than moving in a tight range. Not able to move higher above 5310 Nifty chose to breakdown below strong support zone of 5150-5160. Now the next final support lies around 4920-4950 cuz as you can see the both red support lines are converging at 4920-4950. It will not be broken easily and the index should atleast give a dead cat bounce from these levels. But remember this support zone should not broken on on a sustained closing basis .
Dow Jones View:
First and Biggest fall of the year 2010 in Dowjones will have its effect over other world markets... Grey momentum line starting from March 2009 lows gets broken today...10100-10200 on DowJones will act as a rock solid support as u can see the two red lines converging there which means that indices should atleast hold this levels and bounce back. A sustained close below this support zone will end the party for bulls.
Stock View: Reliance
1130-1150 acted as a strong resistance for the big boy. Not being able to cross this resistance level stock chose to come down and now close to support zones of 1000-1020. This support zone should hold as this is formed by convergence of purple trendline and red supportline
Stock View: SBIN
After breakdown of purple momentum line stock never displayed strength. Now the major support zone is around 2050-2060 which can be considered as a stop loss for short term trades. A sustained close below 2050 will result in further selling in this stock which can take it to next support zone of 1900-1850 where investors can use this opportunity to enter this stock but obviously in a staggered manner.
Hope u have a nice trading day
Regards
Ankit
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