GEPL Technical view-31-12-2010

Nifty opened positive and remained sideways for most of the session. A spurt towards the fag end of the session helped propel it higher to near 6100 levels towards close. It is now marginally above the earlier mentioned resistance level of 6090 but we continue to maintain a cautious view as the structure of the up move since Nov low appears to be corrective in nature. We recommend a strategy of selling Nifty at present level and on any bounce of 10-15 points placing a stop loss of slightly above 6130. We see a minimum downside of at least 2% over next couple of sessions. Analysis of time ratios also point to a near term top in next couple of sessions. Thus traders having long positions should remain cautious


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