Today will be the first day of the month as well as week and hence, today's opening levels will be very important, to decide market trend. Nifty will now be bearish only below 4330 and then 4290. Hence, bullish trades can be taken with these two as the reference points. Nifty future will continue to show bullish spurts till it is above the trend line shown in the attached chart.
Long term investors have to note the Horizontal Line shown in the chart at about 4640, has acted as resistance on previous three occassions and even this time. If Nifty futures decisively cross this level (4640), than markets can see much higher levels - which seems possible only if there is something like a Dream Budget announced by the new UPA Govt. This scenario can happen around 15.07.09 by which time budget is to announced. The bias will turn bearish, when Nifty future breaks the Trend Line.
Reliance appears to be the first one to break the Trend Line on the downside considering its proximity to the same. Reliance can be sold at higher levels with stop loss of 2325.
Infosys will be bearish only below 1560.
Enjoy the ride till it lasts and take care.
Happy Trading ,
Ketan Asher.
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