NIFTY (4505)

Friday`s surge in the Nifty was no surprise after what happened at US markets with a near 300 point rally on the Dow. Nifty has also acheived my next target of 4503/4509 and found resistance there and stayed flat between 4500-4510 for most part of the day.

Pivot Point trading levels for 16th JUL is as under.
S2 S1 PIVOT R1 R2
4420 4463 4488 4531 4556

Pivot Point trading levels for the Week 16th-20th JUL is as under.
S2 S1 PIVOT R1 R2
4286 4395 4455 4564 4624

Pivot Point trading levels for the Month of JUL is as under.
S1 PIVOT R1 R2
4158 4260 4421 4523

10-DMA 4393
20-DMA 4324
30-DMA 4277

Resistances on the way up are at 4503/4509, 4590, 4671. Support is at 4433, 4364.
These are not for any particular day and are valid for MEDIUM TERM.

Now my next target of 4503/4509 was also acheived on friday. Now what ??. According to me 4503/4509 is a strong resistance level and for me, market has yet to give a proper pullback of the rally which started from 4100 which has given a gain of 10% so far. I believe this is the right place for the pullback to happen, but can the market go up further from here?? Sure it can, as we all know that market has its own ways and reasons to move.

Now if we monitor the movement of last 4 months from 2nd April then the movement is something like this.

3617 to 4218 = 601 point gain
4218 to 3981 = 237 point pullback
3981 to 4363 = 382 point gain
4363 to 4100 = 263 point pullback
4100 to 4514 = 414 point gain so far...

Though there is absolutely no weakness seen as yet and I don`t want to sound bearish, but still, I expect a proper correction to start any time in coming week, which should last for atleast 4 - 5 days which may take us to near 4350 levels. So far Nifty has had 5 straight weekly gains.

Now, as I will be out of the city for whole of next week due to certain other pre-occupation, no Airbus Nifty Views will be posted in coming week.