Morning update 03 aug 09

The new week opens on a flat to milder note & the momentum is likely to pick up later during the day. Us markets were flat on monday, brazil gained .5% and uk ftse lost .5%. Asian markets have opened milder but will gain momentum as the day progresses.

For intraday trading on monday morning, one can expect a day similar to friday with a negative bias. Nse index has initial support around 4610 & then around 4600 levels. On the higher side it meets with resistance around 4656 followed by 4678 & the level of 4693 is not likely to be crossed on monday without any market boosting news & even it is crossed intraday, the level is likely to meet with heavy profit booking.

The sharp reactive up move during last hour of friday is likely to be compensated by a flat or initial down move on friday, only to move up later in the day. However if the markets rise initially, then expect the markets to behave similarly like friday. Since every one knows that 4693 is the break out point for nifty, be absolutely sure it is not going to be crossed easily during trading and can only be crossed by a surprise move or a gap up break out induced by over night us markets in case dow becomes highly bullish which again is most unlikely.

So one must keep his fingers crossed for a range bound move on monday within the fridays range. However the critical level of 4693 will ultimately be conquered for higher levels in coming days. One should expect asian markets to remain flat to mild & sgx nifty to remain negative with low volumes to induce a negative opening in indian markets at 9.55 a.m.