Intraday Tips

Tata Steel (Rs. 585)

Buy only on a move above 585 with a stop loss below 572 for an intra-day target of 605.

 Nifty Technical Analysis - Judgment Day

The Nifty gained 14 points over the day to close at 4867. The
Indian markets underperformed the rest of Asia yesterday as
they could not build-up on the gap-up start. After the initial rally
the index hit the major resistance of 4930 (earlier support) and
thereafter traded with a negative bias with a lot of volatility. The
upper end of our mentioned support zone of 16000-16200 was
tested yesterday and the same is likely to hold in the near term.
The oscillators are now deeply oversold demanding a “quality”
pullback. The pattern formed is mildly positive while a new
bottoming pattern is developing on the hourly indicators. The setup
on the Elliot wave study and DM indicator continues to be our
biggest concern as negative triggers remain. However, we
believe that a retracement to the recent fall is likely and during
that upmove we would get to understand the positional trend
better. Most world markets are close to their respective supports
(Dow, FTSE, Bovespa, Hang Seng etc) and hence the downside
looks capped. Overall, the policy today should lead to volatility
but the index is likely to sustain above the 16000-16200 zone.