Locked in Range

Dear Investors,

Nifty started with a big bang, maintained the run expectantly till afternoon and then ‘ABORTED’ at the end to finish in winning trend, Reasons are many but the fact is NIFTY IS LOCKED IN A RANGE 5888 /6083

What keeps nifty in a tight range is

1)     Investors are booking profits at higher levels

2)     All the longs are with thin volume

3)     Intraday news flows like RIL news, Korean Ghost, and Portugal Fears

4)     F&O Expiry in sight and,

5)     Holiday period

All these events are keeping bulls guessing all the day and to run for shelter at the end of the day.

In such circumstances one has to be very careful in creating ‘longs’ as well as ‘shorts’.

Today

Nifty closed @ 5984

High                 6020

Low                  5958

For 23^rd Dec 10

PIVOT @5988 (FOR THE DAY)

R1 (First Resistance) 6018

R2 (Second Resistance) 6053

R3 (Third resistance) 6083

S1 (First support) 5953

S2 (Second support) 5923

S3 (Third support) 5888

5 DMA (Day moving average) 5955

20 DMA (Day moving average) 5910

50 DMA (Day moving average) 6025

200 DMA (Day moving average) 5543

For all the LONG  and POSITIONAL traders

A) START UNWINDING @5953

B) CONTINUE UNWINDING@5923 and,

C) CLOSE ALL LONGS @5888

There is a ‘NO MAN’S LAND’ between 5888 and 5800

For bulls picture will be grim below 5800 AND Bears can start creating shorts

CAUTION

All the longs should be with 5 to 7% stop losses. Try to book part profits at higher levels till Nifty closes above 6080. Till 5777 the long-term ‘up’ trend is intact, below that it may reverse.

Stocks for day trader’s adventure are,

1) Blue Star

2) TISCO

3) HINDALCO

4) V GUARD

5) SAHYADRI IND

6) SUMEET IND.

7) SREE RAYALSEEMA ALKALIES

8) PUNJ LLOYED

9) BILT

10) ALEMBIC

THINK TWICE BEFORE LEAPING

Thanks

Vasant Bele

Disclaimer: Views expressed are mine. Take your own investment decisions