After Wednesday's Federal Reserve meeting Dow Jones was 80 points down in the morning, most of the Asian markets were down and Singapore Nifty was down around 50 points. Therefore a gap down opening was expected today (24-9-09)and Nifty opened at 4913 with a loss of 57 points, it further moved down to 4904 (11.00), moved in the range 4926 - 4953 up to 14.30. As the Europian markets opened in red and were weakening, traders expected downward movement in Nifty. But, at 15.00 Nifty moved up to 4970 and did not show any weakness. Then traders saw Nifty surging to 5017 within two minutes, which might have been the result of short covering, as today was the settlement day for September series. Later Nifty moved down slightly and closed at 4987 with a gain of 17 points.
Today's special effect: Please observe today's Nifty chart closely. It can be seen that Nifty didn't open gap down as stated above. It opened at 5002 with a gain of 32 points. But it may be just a flash at the opening and Nifty futures did not reflect that up move - its high was 4938 only. The interesting point is that Nifty moved to that level before today's closing. Similar feature was observed earlier in individual stocks, but it is the first time it is seen in Nifty.
Today's Nifty futures range was 4996 -4908 having a difference of 88 points. Tomorrow being an exceptional Friday and Agni level decreased to 5023 there may be a buying opportunity when Nifty moves above Agni level, provided Asian markets opening is favorable. Otherwise wait till Nifty moves above Agni level for buys.
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