Nifty update with chart for 26th to 30th October -2009

Nifty for the week ended minus 2.80 % compared to previous week, but with low volumes, may be due to profit booking at higher levels. Nifty is now nearing the crucial support levels of 4900, RSI indicating oversold in the daily chart and ADX(23 ) is dipping below 30 levels - ADX declines below 30 is interpreted as a consolidation after a trending move - If Bearish patterns develop and breakdown, look for ADX to move higher, this time indicating a trending move on the downside. 

Trading strategy for this week should be – Buy Nifty with closing stop loss 4880 for a target of 5040 to 5110 levels or buy 5000 ce around 4900 to 4940 with closing stop loss 4880 for target 5040 to 5110.

Nifty Range for this week   - 4880 to 5182.

Support	4950	4880	4810	4740
Resistance	5040	5110	5182	5254