Nifty Levels - 19 Dec 2008

All those who read my yesterday's post must have seen the accuracy of Nifty levels mentioned. Yesterday i especifically mentioned Nifty to face resistance at 3105 level & having support of day at 3030 levels. Just look at Nifty Spot levels of today below:

Open 3063.00
High 3106.80
Low 3036.30
Last 3077.50

Nifty followed exactly same levels & reversed from 3036 but faced resistance at 3106. I think a trader who has actually played with my figures must have earned at least 70 odd points in futures.

Speaking for Monday, there is intense TUG of war like situation going around in NIFTY. Today Nifty went till 3106 levels on the anticipation of another CRR cut by RBI. Bank Nifty was major help for Nifty along with Reality sector. While writing the post Crude was at five year low levels of 34$/bbl inspite of major supply cuts from OPEC. For Mondays Nifty's immidiate resistance is at 3130 level with support lying at 3030 , 2995 ,2960 levels. Any downside to 3030 can be taken as opportunity to go long for 3130 in Nifty.

Also there seems to be big money coming in play for 3100 call & 3300 calls which may be a hedge against the positional shorts. I find Nifty to still move in range . I still want Nifty to come out of 3240 levels with good volumes for further upside of 3500 which will be the ultimate target for NIFTY. But there is huge downside still left. I am not very sure with the exact bottom but 2252 is acting at short term bottom for this rally which can atmost go to 3500 levels.

But be sure this is not the end of pain till we dont cross 3500 levels in NIFTY. On downside i am still expecting a test for 2252 in coming levels. So get geared up for this huge TUG of War between BULLS & BEARS .

PS:: These reports are being written before US markets opening on friday, & weekly offs are there on saturday & sunday. Any major bankruptcy announcement can be a bad news for world economy . So please follow levels taking those news also into account.