Monday, April 25, 2011

LEVELS TO WATCH


SENSEX  : On Wednesday we said that a move in SENSEX above 19201 and then a close of SENSEX above 19389 will be very positive for the short term and SENSEX reached a high of 19696 above those levels.
There was a GAP up opening on Friday and this GAP should prove to be a strong support in coming days
For today and for a few days the SENSEX high 19811 which it made on 6th april is to be watched VERY CLOSELY as resistance and the GAP HIGH support at 19411 is an important level to watch on CLOSING basis.
If the high at 19811 is not crossed than we are to witness a few more days of RANGE BOUND market and we will concentrate on downside move only below 18976 and 18849 and that too on closing basis.

NIFTY :
For NIFTY we suggested strength above 5786 and 5824 and NIFTY once again touched the high of 5912 where as we gave an upside target of 5920 also notice how the 5/8/13 day EMA worked as support.
As a normal function of short term EMA taking support at higher time frame EMA was suggested earlier and as shown on NIFTY chart in the last correction the 5/8 d EMA took support at 13 d EMA.
NIFTY has strong resistance at 5942 and the GAP high at 5857 should work as support on closing basis.
We need a strong close below 5697 and 5849 for a meaning full down side corrective

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