Thursday, August 20, 2009

4350-4380 Good support zone

Seems like this whole zone has become a very good support area. After sharp price declines, buyers come in this zone to provide the requisite buying to propel the markets higher from here. Twice or thrice we've had very sharp bounces from this region.

Look at the intraday charts of Nifty below. I will watch for a break of this zone over the coming few days - infact might happen this week itself. This would mean we would then have open space to move down to 4100-4150 area which acted as support a couple of times during May-June.

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