Friday, October 8, 2010

Strong momentum rally to kick in next week in midcaps


Nifty corrected significantly towards the end yesterday and closed near to 6110 levels after making multiple attempts to scale 6200 peak during the week.

The consolidation phase after the expiry week last week has continued throught out this week with markets remaining range bound.

A test of the crucial support of 6079 levels is possible for the day and even a close near to that and starting next week a strong momentum rally is expected especially in midcaps. There might be a momentary dip till 6036 levels which should be used for heavy accumulation. Nifty might still be hovering in a tight range for some time testing 6200 levels during early next week.

Options data is pointing to a range bound move with the implied volatility in both puts and calls remaining at 20 and the PCR is also neutral at 1.

A buy around 6079 levels is recommended for a target of 6200 levels.

Resistance levels : 6150, 6181, 6201

Support levels : 6110, 6079, 6036



-Happy Trading

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