VIEW FOR 11-06-2009

We did nothing wrong going above the crucial resistance 4572/75 while making open-low same at 4584, indicating and initiating a long with a very small stop loss. It straight away hit the level 4660 and doubly retraced towards our previous resistance of 4638. On the smaller time frame (1&5 minute) chart, nifty is in corrective mode, but cluster of supports will make the bears confused for sure in the coming session. Either it needs a heavier selling with larger volume, otherwise it's very much possible to witness higher levels in the nifty. On the smaller degree chart it's absolutely alright about the everyday levels and trading stuffs, but on the higher time frame (hourly & 240 minute chart) upside target is expanding. I am not an expert on the character of expansion and contraction of the price, but higher time frame price projection going higher and higher, which is generally a bullish sign (but it's on higher time frame chart, nothing to do with intra movements). In normal scenario higher and smaller time price movements and projection converges time and again to confirm each other, as we experienced at 4638/48 level as well. As a whole Nifty looks Strong as long as 4590 is holding. Below that it will target 4551-4505/95-4460/55 for next couple of sessions. But don't get bearish looking at those levels. 4645-4620-4590 will be all there to protect the bull's castle. Particularly 4620 looks very strong...


On the upside 4682/85 will crucial to challenge the high again.
So for the day,
Supports: 4645-4620-4590 (all 3 are crucial, keep eyes on 4620).. below 4590/85 will be weak for further downside for target 4501-4505/95-4460-4425.
Resistances: 4682/85 is crucial. above that 47009-4737/44-4770-4850.
Important day. Trade safe.

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