Technical View for 03/07/2013

Nifty was on a bear trend and closed at 5857 level. Equity benchmarks snapped three-day winning streak on profit booking Tuesday, weighed down by index heavyweights Reliance Industries and HDFC pack.The BSE Sensex fell 113.57 points to close at 19463.82 after rising more than 1000 points in previous three sessions on short covering and gas price hike. The NSE Nifty slipped 41.30 points to finish at 5857.55. European and Asian Markets are also down and rupee also weaken slightly on after noon, American market also opening down. So this is the time to be cautious.In the last session Nifty gave perfect Harami Candlestick pattern, which signifies that preceding trend is getting ready to conclude, although we don’t have long trend to talk about, but in short Nifty gave such candle near 50% Fibonacci Retracement of last sharp fall and as it can be seen here, just above its falling trend line also. Anyways, it is just one candle, and no need to get panic, bulls have sufficient chance to get exit or lighten position, but yes, if today market gives weaker close, then everybody will start talking about retesting of low or optimist bulls will talk about 5700 levels.So the first resistance for nifty is at 5883-87 level. Next resistance ranges are at 5904-08,5930-34,5949-54,5968-72,6005-10,6050-53,6090-95 levels. On downside first support is at 5832-28 level. Next supports are at 5810-06,5785-81,5764-60,5711-06,5666-61,5622-18,5590-85,5569-65,5536-32,5518-14,5497-92,5477-74,5445-41 level.The trend is now slightly in bull side but a move below 5828 is not good for bulls so today intra resistance are at 5887,5908 and 5934 level and on down side if below 5828 be very alert and below 5805 selling may intensify.

Positional Support for NIFTY 5845 5836 5823 5812 5727 5706 and positional Resistance for NIFTY is   5870 5872 5933 5939                                        

Intraday Resistance of NIFTY are 5861.81, 5866.08, 5870.34, 5883.13, 5893.61, 5904.09, 5956.8, 5972.9, 5989

Intraday Support of NIFTY are 5853.29, 5849.03, 5844.76, 5831.98, 5821.50, 5811.01, 5759.1, 5743.3 ,5727.6

Bank Nifty remained range bound in the last session. It seems that Bank Nifty is setting stage to fall. Again, aggressive traders can go short in Bank Nifty below last sessions low of 11590 (prefer to go short below 11575) targeting about 11450. There can be surprise on the long side, but that call can be taken only after Bank Nifty moves above 11750.

Recommendations :

Buy at / above: 5871.39 Targets: 5887.61 - 5906.81 - 5926.03 - 5945.29

Stoploss : 5852.25Sell at / below: 5852.25 Targets: 5836.05 - 5816.96 - 5797.91 - 5778.88Stoploss : 5871.39