Watch Nifty Ø 5 Oct 2011:: IFCI research,

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

Watch Nifty

Ø  Nifty went all the way down to 4720 levels before pulling back to close near 4800. Bank Nifty was the main culprit. It is time to take stock : -

o   Bank Nifty has taken support around 8800. If this level is violated on a closing basis, its next supports are around 8150 and 7700.Though weakness may not be over yet, we can see some pull back in the next few sessions. Those who are short could close out and wait to see if 8800 is violated. If there is a pull back, one can see resistance around 9175.

o   Nifty has taken support around its crucial level of 4700 ( +/- 25 points). Like Bank Nifty, unless it closes below 4700, one should not initiate any fresh shorts. Nifty faces resistance around 4900 on pull back. If, however, Nifty violates 4700, its next support is around 4540.

o   For long term investors, this is a good time to start. Short term and medium term investors could keep 4670 as initial stop and try longs with trailing stops.

Ø  Nifty's support for 05/10 is likely around 4675 and resistance around 4875 and 4925.