Technical outlook of nifty on 07/08/2013

The massive sell-off witnessed on the market today, sensex hits 52 week low after the benchmark S&P BSE Sensex crashed 449 points or 2.34% to closing at 18,733 points today. Sensex has tanked 1,569 points in past two weeks from level of 20,302 on July 23. The index had hit 52-week low of 17,251 on September 5, 2012. Bankex also hits 52-week low on worries that continued monetary tightening would drive up bad loans. The rupee touched a record low 61.81 against the dollar in noon deals today.

Nifty reached 5550 as we predicted on sunday, Nifty traded at the low of 5521.80, and finally closed at 5542.25. We have the support at 5500 and expect short covering rally on tomorrow if rupee supports. So the first resistance for nifty is at 5600 level. On downside be alert below 5500 and avoid longs below that level. The trend is weak and below 5450 the nifty is very weak be very alert and avoid bottom fishing .So  below 5500 avoid all longs and long should be taken only if nifty stays strongly above 5640 even for short term.

Positional Immediate support for NIFTY is 5500
positional Resistance for NIFTY is 5787 5835 5860 5862 5865 5872 5884 5914 5920 .
Intraday Resistance of NIFTY are 5587.1  5632 5706.5  5654.5  5670.1
Intraday Support of NIFTY are 5497.4  5452.5  5378  5431.1  5415.8