Nifty Views for 2 March, 2009

Nifty opened down on Friday, following global cues traded in a narrow range before falling heavily due to disappointing GDP numbers. A late short covering rally from support levels of 2705-2710 saw the Nifty cross and close above 2750 again.

Now for the short term, 2680-2700 has emerged as a strong support for Nifty and the more we test this level and bounce back, the more confidence traders will have in going long near these levels. Any close below 2660 will bring the bear attack once again which may take Nifty down to 2500 levels.

For Monday, intraday traders should again look to buy near support levels of 2700-2720 if they get an opportunity and short near resistance levels of 2770-2790. Unless we close below 2660 or above 2805, positional traders should stay away from this market. One has to exercise patience and wait for higher levels to short or lower levels to buy as Nifty tends to move in very narrow ranges for the entire day.

Nifty resistance at 2765-2795-2820. Support at 2725-2705-2680-2660