In my yesterdays message about the markets I have mentioned that, some of the patterns in the Nifty are showing weakness. Our markets are behaving like a candle flame. It moves in either direction very fast. I have mentioned that the close below 4620 can be proved fatal and the Nifty could fall down till 4450. In the last paragraph I have clearly mentioned in the bold letters that the Nifty has a good support at 4600 levels and people should buy RPL, Reliance and ICICI bank for short term, and the Nifty close will not be below 4620. I had given some buy calls of Nifty that really proved lucky to my clients. I had posted one of the buy call in the morning. My private clients earned around Rs.250 in Nifty future as compared to the increase in 135 points in Nifty spot.
This is the second time the Nifty has taken support at 4600. Yesterday the low of Nifty was 4580, but the close was still above 4620. So the close below 4620 can be fatal. The only point to worry is now is that the Nifty’s & Sensex new low. Today nifty bounced back and closed above my long-term trend line. This will not be the right time to comment on the markets, as our markets are more dependent on the global cues. Nifty has a resistance at 4750-4800.
Major event this weekend- Fed meeting to decide of rate cut. According to me the cut will be in the range of 0.75% to 1.00%.
As I have mentioned that the Inflation this week will be definitely higher than the previous week. It is at 5.11 vs 5.02.
In the early hours of the markets the discount between the Nifty future and Nifty spot was around Rs.20 but as soon as the markets opened after the sun outage time the Nifty future started showing strength and in the late hours Nifty future was in premium, that gave the positive sign.
The Nifty put prices of 4500-4600 came down due to selling pressure and the short covering in the call writing helped the Nifty gain 122 points and Sensex 403 points.
We need to still wait for the clear trend before commenting on the market.
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