Nifty failed to go past the opening high of 6013 and it was sell on rise until it tanked further towards 5863 levels after 2:30 pm. VWAP has now fallen down to 5950 and there was significant resistance at 5966 levels in the afternoon as Nifty did attempt to come back from the morning low of 5930 up to 5990 levels. Nifty closes in the red @ 5890.
1) This is the first weekly close in more than two months below 5900 and all technical levels (EMAs and SMAs) have fallen apart. Nifty is a sell on rise and buy on dips mode and vice versa. Now the level of 5990 will become a good reversal point and closing above 6135 remains the first criteria for more upsides. This scenario certainly not in the November series.
2) There are some concerns on the fundamentals of telecom sector with the 2G scam and the banking index is losing lot of its inflated weight and coming to reasonable levels.
3) Trading the bounces along with short covering rallies provide good intra day gains with the kind of volatility on the index. Trading zone for Monday will be 5820-5965-5985. For intra day the level of 5966 will be important on Monday. Happy weekend! Happy trading!
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