Thursday, August 2, 2012

Nifty Intraday Movement August 2

"bias can remain positive if trade sustains above the candle." Index mostly maintained above the candle, but ended only a marginal 21 pts or 0.1% higher. Healthcare Index outperformed, up 1.3%, and broader market also did well. Small/Mid-cap Indexes ended 1% higher, due to which, the A/D ratio ended at positive 2:1.
The action formed a High Wave, a candle with a small body and shadows on both sides. It indicates strength of last three days is moderating at higher levels, closer to previous high of 5268 and gap-down area. Move
above 5268 by Friday would be watched for faster retracement of fall. Failure could indicate lackluster structure.

Future falls into discount of 4 points from premium of 12. Testing previous high of 5268 and gap-down area 5280-5313. Reverse if holds 5240-45 or 5225-30.
Action : Sell in the range of 5268 – 5273
Targets : 5235 / 5215 / Lower 
Stop-loss : 5283

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