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Posts Tagged ‘Bulls & Bears

Trendless Trend

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Lackluster & low volumes is the only description that can describe yesterday’s trade, but some buying activity was seen in select midcap stocks. Many technical parameters are pointing towards a weakening of the trend. As global markets have closed positive our markets are good, but the big question is whether this can be sustained. Based on Nifty levels, 5445 will be the resistance for the day & 5380 could be a critical support level.

There could be further rise in directional movement if markets trade away from these levels. To maintain the upward trajectory today Nifty needs to stay above 5450. Any increase in  volatility does not signify much unless, eventually it breaks out of the range of 5225 or 5545 levels on closing. Based on the chart formations a strong tussle between the bulls & bears is currently underway.

Caution is advised on any trading position as markets likely to become very choppy as a series of false breakouts have been observed in many stocks. From here-on the markets needs a strong reason to breakout from this range & only then can we could see an increase in momentum.

Written by Rakesh Gandhi

March 22, 2011 at 1:57 pm