Rajesh V: Gap down openings and international uncertainty a bane for traders

With the announcement of the S&P's downgrade of US treasury and the information that other countries are also in line for a downgrade have resulted in uncertainty.

There is no clear direction in terms of policy from the governments. Combining all of these has in-fact, led to gap-down openings in our market. The level of 4800 is a 20% correction from high of 6000. Investors can utilize this level for long term investments.

Nifty Future:
Weekly levels:
Supports - 5070 / 4990 / 4940 / 4905 / 4855
Resistances – 5140 / 5190 / 5270

Bank Nifty Future:
Weekly levels:
Supports – 10170 / 9970 / 9840 / 9760
Resistances – 10400 / 10600

Rajesh V. Ravanappan is a practitioner of technical analysis. He has eight years of experience in the share broking industry. He is a contributing writer for www.goodreturns.in. You can contact him at rajeshvravanappan (at) gmail (dot) com

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