Golden Barricade
Today again we witnessed importance of Fibonacci numbers. Though it is not the eternal support but depending on the strength of the trend, it does lend support initially. If attacked consistently within short period it will give the way out. It will not sustain. But it will certainly give support or pose resistance if approached after a reasonable time period.
Today nifty took the support around 2863, and saw a smart pull back, though not smart enough to bring the nifty in the green. While talking to some of the market men, they told me that there can be second stimulus package coming next week so nifty bounced back. What ever it may be, bulls defended 2863.
Now where we go from here?
Today many midcaps (one of my friend calls it madcap - you never know how they will behave) staged surprising moves. IT pack was weak. It was one of the culprit hindering the up move of the nifty. Tomorrow if there is some bounce in IT stocks and follow up buying continues, then we will certainly head towards 3080, where I feel there can be some resistance. Beside this nifty is sitting above clusters of weak supports which are 2810, 2748, 2715. Also heavy put writing and call unwinding was witnessed earlier at 2600 levels. Since 3rd December Money flow index is improving on nifty chart reaching 82.25, which can give signals of profit booking soon. I expect in this series nifty will close above this levels. But you never can be perfect; because the ultimate truth is that we are in a bear market.
Market men will be eagerly waiting for the IP data tomorrow, which may give a knee jerk. Every dip can be considered as buying opportunity for the time being. But never forget the stop losses please...
