Tuesday, January 26, 2010

Short Covering is Expected

After three days of downfall and looking at the expiry ahead , Nifty is expected to witness short covering. The pull back can take it back to 5080-5120. The recent low of 4950 is Laxman Rekha for short term time frame. One should keep this index level as stop for all short term long trades.

Globally US markets have started to bounce back on the back of Consumer Confidence Increase and rise in U. S. retail sales.
TCS , Rolta and Allahabad banks look strong on charts and if market pulls back then these stocks may also bounce back .
TCS has support at 730 and resistances are at 804-829.

Rolta has support at 180 and resistance is at 206.

Allababad Bank has support at 130 and resistance is at 144.

One should keep volumes low as Nifty is still trading below 50 DMA and its in short term downtrend.

No comments: