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The Nifty continued to rise today after a weak opening and is well on its way to the resistance of 4940-4950 that we talked about yesterday. While the resistance on the 30 minutes chart comes at 4950 but on the daily charts, it will come around 5100. A move above 4950 will be significant on the 30 minutes chart and we should expect it to reach 5100.
But the important point is that will 4950 be broken? Well, we cannot go against the market and we will follow it whatever it does. We can just change our own strategies to adjust to the movements of the market. Now, since the short term trend is up, we can take long positions and will be ready to close them at 5100, but at 4950 levels we have to be extra careful and we should be ready to exit if the market shows some weakness.
There are some good charts visible today, which have been discussed below.
But the important point is that will 4950 be broken? Well, we cannot go against the market and we will follow it whatever it does. We can just change our own strategies to adjust to the movements of the market. Now, since the short term trend is up, we can take long positions and will be ready to close them at 5100, but at 4950 levels we have to be extra careful and we should be ready to exit if the market shows some weakness.
There are some good charts visible today, which have been discussed below.
Alstom Projects (APIL) has made a perfect double bottom pattern or a ‘W’ pattern and has now crossed the neckline at 680. With a stop loss at 660, one can consider buying at 680 for a target near 730. 
Balrampur Chini has shown some good recovery after hitting our earlier stop loss at 80 and is now very close to its resistance line. The positive divergence between the price and the MACD (MACD crossing its resistance line whereas price still below it) is a good indication and suggests that this resistance line at 97 may be broken. One could consider buying it above 98 with a stop loss below 90 for a target of 115. 
Gail India jumped up by about Rs.25/- today and may still look good in case it crosses 430, since then it would have crossed its resistance line at 429. Buying above 430 with a stop loss at 410 may be a good option because the target above 430 seems to be close to 475. 
Again, a pattern, very similar to Gail has been formed by Jindal Steel. Though, the volumes are still low and do not show any breakout volumes and that is the only concern. Maybe, we are drawing the line too low. But, any way the line is drawn, a breakout is certain if it were to cross 2200. One may consider buying above 2200 with a stop loss of 2070 and hold for a target of 2430. Just be careful around 2370 because there is a fair bit of resistance there.As mentioned in earlier newsletters, we are inviting our esteemed readers to send in their contributions in the form of articles to be published on this page. Take this opportunity to voice your opinions to the world about the rise today, the markets in general or anything remotely connected to the markets. Please e-mail your articles and don’t forget to mention your name and location so that you are given due credit for the article that is published.
Happy investing!!!
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