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Tuesday, November 16, 2010

NIFTY Support @ 5970 & then at 5928



NIFTY Daily Analysis Technical Chart:

NIFTY had another big fall today.  It opened above previous 2 day's close but fell to close much lower.

Open: 6143.45  Close: 5988.70  (-132.90 / -2.17%)

Market Outlook:

  • If NIFTY falls tomorrow, it could close near support of 5928.
  • Today also it closed at a support level of 5970 and so might make another attempt to rise tomorrow before falling again


Technical Indicators:

  • Today a triple bottom was formed at 5970, indicating very strong support at this level.
  • NIFTY has still not entered oversold levels so could possibly fall a bit further tomorrow, but it wouldn't be as big a fall as today's.


News (Fundamentals)

  • The fears over China's rate hikes and other financial news in China seem to have been given too much importance as it does directly make any big difference to India, at least not in the short term.  This fall seems more out of a sense of general insecurity than anything fundamental.  This tells us that the market should rise again soon.

NIFTY Daily Analysis Technical Chart

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