The readers of our last blog post published yesterday might have noticed that the support of 6145 did hold yesterday. In addition, the moving average convergence divergence is also indicating strength. The stochastic is suggesting that the market is overbought but the trend line spells out room enough for the market to continue up north.
With all this in mind, the intra-day traders of Nifty are advised that if the market holds above the 6152 mark with good volumes in the opening moves and remains so in the first few hours then it will go to 6188 which must act as a strong resistance. Fresh logs will emerge if this resistance is taken out leading the benchmark to 6209 and 6260 .
On the other hand if the supply pressure which erupted in the last hour of trades yesterday continues and the support of 6152 is breached with good volumes and momentum, more shorts will emerge in the system and coupled with unwinding of longs will drag Nifty down to 6136 and even to 6079.
Mid term investors are advised to add those stocks which have performed well in this run up which started on the 10th April 2013 if there is a meltdown today. If there is a flare up, sell off those stocks in your portfolio which have been battered out of shape and are still languishing around their low levels. Metal sector, for example.
The support points for buying HDFC Bank are at 709.10 and then 699.95
The support points for buying ITC are at 331.25 and then at 326.75 and 309.30
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