Charts : TATA STEEL - TATA POWER - SAIL
Charts : RELIANCE - NIFTY EOD - ICICI BANK
NIFTY FUTURE :
Nifty continued to have a run defying all laws of gravity and has closed near the .618 level at 4398. It is better to be cautious at this level due to following reasons:
1. Nifty is at a crucial juncture of .618 level of retracement.
2. Nifty has still not made a higher top which can happen only above 4482 i.e another 100 points. Interestingly, Reliance which supported Nifty on Thursday, could not cross the previous day's high.
3. " V " shape recoveries usually fail.
If it manages to go above 4400, Nifty will find strong resistance at 4450 and 4480, that too if so much steam is left. On down side, break belwo 4330 will be first sign of weakness and will find support @ 4280. Below this level 4250 will act as support.
In view of the sharp rise, please protect your long positions with STOP LOSS. Its definitely a good time to sell if you have bought @ 3950-4000 levels. Moreover, on the 4th day of rise - from 3905, it is best to avoid fresh long positions.
With Best Wishes,
Ketan Asher.
Thought for the Day
You can break the rules and get away with it.
Eventually, the rules break you for not respecting them.
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