Monday, May 7, 2012

May7 Update

Niftydipped below 5000 levels but recovered sharply to close above 5100 levels with moderate volumes and neutral breadth. Important points for today.

1. Nifty up by by 0.55% with 1.15 breadth.
2. 368th day since the highs of 6338, 94th day since the lows of 4531, 51st day since the swing highs of 5629.

Nifty has made a short term bottom below 4900 today. But this does not look like a durable bottom , so Nifty is likely to attempt sub 5000 levels again. Nifty may not go much below today's low in 2nd attempt since the momentum in last 2-3 days was very strong and Nifty may take few days to breach 4950+ levels in a decisive way. Nifty's range for this month stands at 291 points and quarterly range at 390 points.

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