100 points gap filled up!!!! Today NIFTY made a low at 5205 which completed the gap of last Friday. NIFTY was as unique as RAONE but difference was that NIFTY hold up the good sentiments while expectation was bearish due to global turmoil last nyt while RAONE was totally opp where expectations were high but was RA-0 ;). NIFTY chart is indecisive as the Greece bailout. Greece has asked for referendum of the bailout and m happy they did that. I read an interesting article in New York times which illustrated in a graphical way that what each country owes to one another. And interestingly I found that US is the biggest beggar of the world. They have borrowed $14.5 trillion which is 100% of their GDP while they have landed in all just $11 Billion. And talking about Greece, its GDP is just $0.3 trillion and Debt of $0.7 trillion. IF such a little country like Greece can create such a crisis than just imagine what will happen if US goes into recession or any other bigger country for example say Italy who is feared next after Greece with $3 Trillion debt??? Sorry guys am not fearing you but just warning you the extent of this crisis.
Technically speaking, As I said 3 days back, NIFTY had to fill up the gap and it did sooner than expected. Now we face strong support of 100 DEMA and support line at 5180ish levels. On the upper side we have 5450 and 5610 as strong resistance. If 5170 is broken in near term than you may see 5114 acting as a strong support. REMEMBER we have 30 points gap at 4827 level and ofcourse it may even take days, weeks or even years to fill that gap!!!!
Strategy:- Prefer banking stocks for next 2 expiry and avoid Automobile and IT sector.