8 Sep, 2014 (8:55AM IST)
The NSE index Nifty is making very interesting trading patter. On technical charts, some major signals are turning lower, indicating at least – 100 points correction in the index might be possible in the near term.
BUT- we all know that Nifty does not follow any rules, signals or charts when it comes to rallying 🙂 So, keep an eye on higher levels of this index and watch for any signs of support or weakness. Currently, Nifty has found support at 8050 levels. In last two sessions, the index has failed to breach above 8123. So, for today, this becomes Nifty’s range (8123- 8050).
Also, in both these sessions, Nifty showed strong support at lower levels. So, don’t think of short selling this index at lower levels, buying at those levels might be a better idea.
Rupee is near its major resistance of 60, so USD/INR currency pair’s trading pattern might influence Indian markets today, at least till European markets open. If rupee trades stronger then Nifty might jump back to 8150 levels.
Going by the gains in SGX Nifty, we might see a positive opening in Nifty, near the opening levels of Friday (8009). After that rupee’s trading pattern might affect Nifty’s trade too.
Keep an eye on resistance and support levels for this main index and trade accordingly.
Good luck, have fun, have a great session in markets today!
See you later.