Tuesday, November 10, 2009

4900 reached. Will it be able to break the 4950 ceiling ?!


Yesterday markets reached the target of 4900 levels and few days back, I had written that there will be a short term rally till 4950 which will act as a strong ceiling.

Looking at the PCR data (which stands at 1.36) and other indicators, market seems to be under the control of bulls with FIIs buying index futures worth around 600 crores.

There has been massive increase in OI in 4800 put and decrease in 4900 call which is also a bullish sign.

Given all this scenario, as per the pattern, Nifty has a strong resistance around 4950 levels. Eventhough all the other parameters point to bullishness, the resistance at 4945 level seems to be a tough ceiling to break and Nifty might pull back from that level.

Resistance levels : 4926, 4945

Support levels : 4867, 4837


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Happy Trading
www.tripleint.com

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