Friends,
This is the Post which I have put on my own Blog on 27th May 2008 (Tuesday)
It is probably time to take market cues from the Index mover Reliance Industries.
{ Please see the attached Chart to get a better perspective }
The Stock did try to surpass the resistance zone of Rs 2650-2700 but failed to do so, presumably because of heavy selling from large players.
Technically, you may consider that the pre-Jan08 support zone of Rs 2700/- has now effectively become a resistance zone - a classic case of previous support changing its role as a resistance provider!!
The more recent move from Rs 2200 levels to Rs 2700 levels is in the form of a rounding pattern (though technically it cannot be called a rounding top).
The immediate support is at Rs 2480, which is incidentally today's low and a break below this should lead to further selling. I would expect price to re-enter into the sub-Rs 2200 price zone. Keep a Stop at 2665 for short sell positions.
And yes, if this heavy weight falls as evaluated, I wonder which stock can support an already weakening Nifty !!!
Happy trading !
CA Rajiv D Khatlawala
This is the Post which I have put on my own Blog on 27th May 2008 (Tuesday)
It is probably time to take market cues from the Index mover Reliance Industries.
{ Please see the attached Chart to get a better perspective }
The Stock did try to surpass the resistance zone of Rs 2650-2700 but failed to do so, presumably because of heavy selling from large players.
Technically, you may consider that the pre-Jan08 support zone of Rs 2700/- has now effectively become a resistance zone - a classic case of previous support changing its role as a resistance provider!!
The more recent move from Rs 2200 levels to Rs 2700 levels is in the form of a rounding pattern (though technically it cannot be called a rounding top).
The immediate support is at Rs 2480, which is incidentally today's low and a break below this should lead to further selling. I would expect price to re-enter into the sub-Rs 2200 price zone. Keep a Stop at 2665 for short sell positions.
And yes, if this heavy weight falls as evaluated, I wonder which stock can support an already weakening Nifty !!!
Happy trading !
CA Rajiv D Khatlawala
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