Tuesday, May 5, 2009

Market view for 6.5.2009

After a big blow off yesterday, market seemed to be taking a breather today. Inspite of choppy movements, Nifty futures did manage to make a new top, thus continuing to show strength.
In yesterday's post, i missed out mentioning one more possible hurdle that market faces, is that of Mid point of 52 week high/low at 3710 for Nifty Spot and 3698 for Nifty future. Today Nifty future made a top of 3693 -just 5 points short of 3698. Even if this level is breached tomorrow, closing above the resistance levels mentioned in yesterday's post (3750) countinue to remain a major challenge for the market.

Tomorrow, Nifty futures trading below 3620 will confirm that it is on its way for a correction.

I would reiterate, that at these levels, it is better to adopt the strategy of reducing long position and wait for a correction before fresh buying.

Happy Trading,

Ketan Asher.

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