==>> Nifty good support at 4205 levels

Its been a very volatile day for the Indian markets. Markets rebounded sharply, after witnessing heavy selling in the last two days. Indices opened up strong, remained in the positive zone for most of the day. Sensex was up almost 180 points, but fell down to zero level after mid session. In the last 2-3 trading session we have seen some heavy selling pressure after mid session. Sensex was down by 60 points, but it was again the 2.30 factor that pulled the markets. Short covering in the markets helped Indian brousers regained its lost shine. Sensex zoomed nearly 300 points and finally settled at 14521.89 up 256 points or 1.8%. Nifty closed at 4313.60 up by 62.20 points or 1.46% after making a high of 4326.20.

Nifty made a low of 4206 and a high of 4326.20. In my last blog I have clearly given the support & the resistance level of 4205 & 4315-4325 respectively. But Nifty closed at 4313.60, below the resistance level. Buying in Metals, Banks and Capital goods lead the markets closed above its previous close. Positive Gloabal markets too helped the Indian markets. Short covering in the frontline stocks were seen. DII were the major buyers in the market, where as FII were net sellers.

Nifty for the week closed below at 4313.70 levels. As mentioned that the Nifty has made a "Doji" pattern in the last week that may lead to some correction in the coming week. Last week Nifty made a high of 4693 and closed at 4583.

For the first time since 1977-1978, Inflation for the week came at -1.6% vs 0.13%. So does this mean that India is in recession?? No not at all.. For a country to be in recession will declare its negative real economic growth or falling GDP for atleat continuesly for 2 Quarters. It just means that there is fall in the demand of goods & services and increase in the real value of the money.

Nifty took good support at the 4205 levels, But as mentioned earlier in my last blog (www.technicalsvishaldangaich.blogspot.com) that Nifty has resistance level at 4315-4325 levels. If we take the retracement level by Fibonacci levels from the all time high to the low of Nifty, which was made in the month of Oct i.e 6357 & 2252 respectively, 4315-4325 levels are derived. Till the time the close is not above the same, long position should be avoided. Friday's rally may be just a bounce back after the heavy selling in the markets. Nifty has fallen down by 500 points and Sensex by almost 1400 points. Correction has been down for now. Traders are adviced to buy in small qty...