Saturday, February 5, 2011
Upmove dissipates @5556 & Nifty closes just above Agni level
On Friday(4-2-11)Nifty opened at 5514 with a loss of 13 points, moved upwards up to 5556 (yesterday's EMA 10), moved downwards 187 points to touch 5369 ( 21x ie. 21 x 256 = 5376) and closed at 5396 with a loss of 131 points, in M1 just above today's Agni level (5394). Nifty futures range was 5357 - 5566, having a difference of 209 points, second highest difference this year (first one is 14th January with 221 points). From the above figures it can be seen that Nifty futures was at a discount of 12 points ( 5369 - 5357) near the end of the day.
For Monday it gives a confusing picture with possibilities in both the directions.
Positive factors are Nifty closing above the Agni level and it is in Ni,Sa,Ri area (21x) where a reversal can take place. Negative factors are it is below EMA 10 and Nifty may slide to centre of M1(5286) as the closing is in M1 as pointed out in day before yesterday (2nd Feb). So, keep away till the direction is clear.