Tuesday, May 03, 2011

LAST HOPE IN NIFTY FOR BULLS

AS PER ELLIOT WAVE ANALYSIS WAVE-4 OF THE INTERMEDIATE UPTREND SHOULD END BETWEEN 5550 AND 5577. TODAYS CLOSING IS AT 5565. THE HARCORE BULLS CAN TAKE LONG POSITION IN THE MORNING AFTER 10:00 A.M. WITH A STOPLOSS OF 5500 INTRA DAY OR 5500 ON CLOSING BASIS FOR A MEDIUM TERM TARGET OF 5688, 5743 AND 5796.

WAVE-1: 5177.70 ON 11.02.11 TO 5599.25 ON 18.02.11.
WAVE-2: 5599.25 ON 18.02.11 TO 5232.75 ON 25.02.11.
WAVE-3: 5232.75 ON 25.02.11 TO 5944.45 ON 06.04.11.
WAVE-4: 5944.45 ON 06.04.11 TO MAY BE 5550-5577.

SAME IS THE CASE WITH BANK NIFTY. WAVE-4 OF THE INTERMEDIATE UPTREND SHOULD END B/W 10800 AND 10850. IF 10800 HOLDS THEN BANK NIFTY CAN SCALE BACK TO 11300, 11500 AND 11800.

NIFTY SHOULD TAKE SUPPORT AT 5575

IN OUR OPINION NIFTY SHOULD TAKE SUPPORT NEAR 5575 WHICH IS 61.80% RETRACEMENT FROM THE LOW OF 21.03.11 AT 5348.20 TO THE HIGH OF 5944.45 ON 06.04.11. IF THE CURRENT BULL MARKET TO SUSTAIN, THE LEVEL OF 5575 SHOULD NOT BREAK ON CLOSING BASIS.

RBI hikes repo, reverse repo by 50 bps each, CRR unchanged

In a bid to clamp down resurgent inflation, the Reserve Bank of India, in its annual monetary policy review in FY12, raised repo and reverse repo rates by 50 basis points each. The repo and reverse repo rates now stand at 7.25% and 6.25%, respectively. However, the CRR has been left unchanged at 6%.