PRE-OPEN MARKET OUTLOOK(05-08-2009)

ALL TRENDS ARE UP AND INDIAN MARKETS ARE AT THE HIGHEST LEVELS OF RALLY THEREFORE SENTIMENTS WAS HEATED AND PROFIT BOOKING AS WELL AS RED CLOSED WAS SEEN YESTERDAY ON THE BACK OF WEAKER GLOBAL CUES. IT HAS BEEN OBSERVED THAT MOMENTUM SLOWED DOWN IN ALMOST ALL THE GLOBAL MARKETS AND SAME FEATURE IS VISIBLE IN INDIAN MARKETS ALSO. NIFTY IS TRADING WITHIN THE RANGE OF 4600-4715 FOR THE LAST 3 SESSIONS. MIXED FORMATIONS HAVE BEEN OBSERVED FROM YESTERDAY INTRADAY CHARTS ANALYSIS AND MORE CONSOLIDATION REQUIRES TODAY FOR FURTHER UP MOVES. IMMEDIATE SUPPORTS ARE AS FOLLOWS:-

1- 4650
2- 4630
3- 4585
4- GAP BETWEEN 4570-4585

ONLY RESISTANCE RANGE IS:- 4690-4715


ALMOST ALL THE GLOBAL MARKETS ARE RANGE BOUND AND IT SEEMS THAT CONSOLIDATING FOR THE LAST FEW SESSIONS AND IT IS EXPECTED THAT THIS PROCESS WILL ALSO BE SEEN IN THE INDIAN MARKETS AND AFTER CONSOLIDATION WILL BREAK OUT WITHIN NEXT COUPLE OF SESSIONS.

AS PER MY VIEW INDIAN MARKETS WILL OPEN AND TRADE FIRST TRADE WITHIN YESTERDAY TRADING RANGE(4650-4715) AND ITS BREAK OUT WILL GIVE NEXT MOVE CONFIRMATIONS. TODAY TRADING PATTERNS AND BREAK OUT OF YESTERDAY RANGE ARE MORE IMPORTANT THAN OPENING AND CLOSING. TRADING PATTERNS WILL GIVE INDICATIONS AND BREAK OUT OF YESTERDAY RANGE WILL GIVE CONFIRMATIONS OF NEXT MOVE. ALTHOUGH MIXED INTRADAY CHARTS FORMATIONS YESTERDAY BUT I AM EXPECTING CONSOLIDATION AND GREEN CLOSING TODAY AS WELL AS RALLY EITHER FROM TODAY OR TOMORROW. FOR PRECAUTION CONFIRMATION FROM YESTERDAY RANGE(4650-4715) BREAK OUT IS MUST.


(LALIT KUMAR DHINGRA)