Monday, October 31, 2011


Following the international markets Nifty has opened with huge gap-up on Friday. Nifty has tasted an intraday high at 5399 and was trading around 5350 level whole time. Metal stocks rocked because of heavy short covering after Europe eases. Nifty has faced resistance around 5400 level on its 200-day moving average. Nifty had breached its 200-day moving average on 2th may 2011 and had not closed above this line so far. U.S. markets were flat to negative on Friday’s session while Asian markets are also trading negative in morning. SGX Nifty is trading at 5380 level. Nifty is little overbought at this stage. Nifty has another strong resistance at 5415 level. A trend line is occurred at 5415 level and 200 –day moving average also on this level as showing in daily chart of Nifty. Nifty may face weakness at this level.  Market is expected to trade flat for today’s session. Trading in stocks is advised for today.