Technical View AMBIT CAPITAL Nifty Sell only below 20DMA (6130)

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 Today the Nifty had a sharp crack and closed below 6200
with loss of 81 points.
 The index broke the 6220 and the 6200 support levels
but held the 10DMA, which is at 6188.
 We estimate such a fall to be a Buying opportunity unless
Nifty breaks 20DMA, which is at 6130.
 On the hourly chart, RSI is at oversold levels. Hence we
expect near-term bounce.
 Any near term fall is an opportunity to Buy for further
upside, which will first target 6400 and then 6640.
 Reversal level for the uptrend is at 20DMA i.e. at 6130.
 Therefore we advise investors to use any fall as a Buying
opportunity with an upside target of 6400.





Sector update
BSE OIL & Gas Index


 Until October 25, 2010 the index was trading in a
rectangular channel, or consolidating in the 11000-9000
trading band.
 The index had an upside breakout on October 25, 2010
which sustained above the 11000 mark for two trading
sessions. This confirms the breakout from the
consolidation pattern.
 In November, we expect the index to target 11900, then
12400. They are breakout targets for the Oil & Gas index.
 On the downside, support and reversal are at 10700.
 Best Buy picks: ONGC and Reliance