#49 Nifty Update

NIFTY opened flat today at 5599. It made a trap move towards 5630 where people might have thought of 5700 but it crashed from there towards the level of 200 DEMA at 5580 and hovered around that level for almost whole day. Markets seems to be boring today for the traders
except the first hour of trade. Reliance cost issue of KG basin is still on but they claim that it was inflated and it was lower than ONGC and GSPC project cost. On other hand Banks are opposing the idea of decontrol of savings bank rate as it would increase competition which will increase pressure on profit margins. Bernanke of FED said that dont expect an immediate bail out for Debt market of US…So looking at European and US debt market restructuring keeps us
cautious on the global front. Technically speaking market just closed at 200 DEMA at 5581 which is a crucial level. On weekly chart Evening star was not confirmed but still daily MACD seems weak. Until and unless market does not close over 5677 for 3 days dont expect a bull
move. I still recommend selling NIFTY with tgt 5540/5470/5350/5200 with SL of 5700.
NIFTY levels for 18th July:-
R-5637               S-5567
R-5677             S-5539
R-5700             S-5475
R-5749             S-5400

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