#35 Nifty Update

Today the fight was between rumors and technicals. Rumors were strong at the start with the high of around 5557 while technicals were indicating a down trend and market made low of around 5496 from the
high. But at the end rumors were slightly strong and ended up with 18 points up. NIFTY is facing two strong resistance at 5566 and 5576 which ought to be 100 DEMA and 200 DEMA respectively. Technically speaking market will resist around 5570 levels and have a bounce back
upto 5330. But a dragon fly Doji has been witnessed today on daily chart so probably we might see a upside potential but only if we see a breakout of 5576. On the positive side, FII has been increasing its activities in the Indian market and we have seen incredible increase in net investment by them in last 3 trading session. Hike in price isvbeen positively discounted by the analyst as it was necessary for fiscal control and inflation. All the foreign markets are in positive rally which has supported our markets. Mutual funds will be a new scheme of investing for FII and SEBI is working on the norms for the same. My last week portfolio pick “jain irrigation” has shown the movement and have achieved almost rs.14 from my call. Being a Technical Analyst i still suggest selling NIFTY (cash) with a Stop loss of 5586 and Buy NIFTY above 5600 with SL-5556.
NIFTY levels for 29th June:-
R-5566             S-5524
R-5576             S-5500
R-5609             S-5472
R-5650             S-5442

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