In my post on evening of 19.6.2009, i have given detailed reasons for market to have bounced from 4200 levels. Add to it one more reason known to all, that it touched the Trend Line which is being shown on my charts for past few days.
As for Monday, Nifty Future should open with more confidence that interim bottom is made. On my chart i have shown a falling wedge formation, the breakout of which should happen @ 4350. Normally, such wedge breakouts are very sharp and hence it would be interesting to see if market moves up as sharply as the pattern suggests - i would hasten to add here that the oscilltors do not confirm strenght in the move. It will find resistance @ 4385 and there after a bigger hurdle @ 4450 and the last one being 4500. In veiw of the above, if at all market goes to 4500 range it is better to liquidate long postions and watch for further move. Long positions taken at lower levels should be protected with stop loss of 4250. Fresh buying can be consiered above 4350 with stop loss of 4320.
RELIANCE FUTURE: On friday, Reliance led the recorey process, as it sharply moved up by Rs. 60 in last hour. Here again i have shown Wdge formation and it can show a sharp up move, but once again not supported by oscillators. On Monday it can be bought above 2051 with a stop loss of 2025. Long positions taken on Friday at lower levels should also keep the same stop loss. It will encounter first resistance at 2100 levels, then at 2130 and major hurdle at 2180 levels. It will be prudent to liquidate long postions at this levels.
INFOSYS FUTURE: As is being suggested here for the past two days, this remains one of the strong stocks and may help Nifty gain strength. Its recent top of 1838 will act as resistance and thereafter 1885 should be watched for reasons given on the chart.
Always use the Stop Loss.
Happy Trading,
Ketan Asher .
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