Today Nifty took off from 6060 levels and did not look back to register a high of 6153 on spot and closing VWAP is 6133. A great green opening for the October series for higher targets. This move so far has been mainly propelled by banking index and steel and auto stocks. The big one Reliance is still trading range bound and if it breaks above 1020 to 1200 levels then Nifty could touch 6500 levels. Nifty spot has closed near the highs @ 6143.40
1) The trading range for next week starting October 4, 2010 shifts a gear up and bullish range will be 6100-6290-6400 levels for the week. For this scenario to play out Nifty needs to close above 6090 on closing basis over the next week and any dip up to 6080 would be a buy to sell on rise for intra day or using the opening range breakout plan on daily basis. The index holding above 6100 is the key hereafter. The result season too begins this month and index will be highly volatile as results pour in with good results being rewarded with higher prices and bad ones will be taken for a beating. It is in this context RIL results assume great significance in this quarter.
2) The bearish range for this week will be below 6080-5880-5830 level. At the moment, things look evergreen for Nifty and market sentiment is now highly bullish with this Friday's trading session.
3) Another important factor to be kept in mind is the big Coal India IPO slated to open in the middle of October and both the above scenarios could play out over the month of October when institutional investors could book profits to invest in the Coal India IPO. Happy weekend! Happy trading!
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