Nifty review/update for the week 27th to 30th January 2009.

Review
Nifty has closed to second weekly lows (2678.55), since the October low weekly closing (2584). Nifty has lost all its retraced points from previous week low of 2702 and closing around 2828 levels and even closed lower than that – making lower low and lower high for past 3 week. Now for this bear rally to weaken, it has to close above 2965. Now it may target the October low closing levels 2584 and even target 2362, if this ongoing bear rally sustains and gets strengths.

Outlook
On weekly charts, Nifty is indicating immediate resistance at 2766 and 2848 but on the lower side Nifty may find minor support around 2655 and 2600 levels on closing basis. Nifty may attempt some bounce back in this week – since January settlement ends this week but before that it may test 2610 levels and then attempt bounce back.

Support and Resistance for the week
Support 2655-2585-2525
Resistance 2766-2848-2904.

Follow up

1) The first strategy indicating minor profit if initiated @ 173 ( both call and put) , now trading at 155 – one can hold and exit on any bounce back of Nifty above 2700, with stop loss of 2610 on closing basis.

2) The second strategy would have yielded good profit, if imitated and one can hold with stop loss of 2766 on closing basis and book profits around 2610 levels.

Strategy for the week
Nifty

For this week, reinitiate shorts on every attempt of bounce back of Nifty with stop loss of 2860 on closing basis.

Trading Tip
Experienced traders control risk, inexperienced traders chase gains.

Quotes for the week
Don’t stand in someone else’s shadow when it’s your sunlight that should lead the way.

For intraday calls, please visit the blog http://manojchopra18.blogspot.com/ or my yahoo messenger id manojchopra70@yahoo.com for any stock views, regarding its support and resistance or near term trend.

Tags: calls, daytrading, free calls, intraday, tips

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