WEEKLY MARKET UPDATE AS ON MONDAY 11 th JUNE 2012

NIFTY - (5068)

Our last weekly update was off the mark and our bear stop loss of 5000 on a closing basis has got trigerred. In the last week NIFTY  appears to have made a double bottom around 4770 mark and has then posted a strong rally to 5085 on good volumes and closed  the week at 5068. NIFTY has closed above 5000 and has also hit our bear stop loss, which means we can expect more upmove in the near  future. In the current week NIFTY opens on a strong note. As long as the NIFTY continues to trade above 5050, it will trade with a bullish  undertone and we can expect the NIFTY to hit higher targets of 5144 - 5173 - 5284. If the NIFTY breaks below 5050, it will mean the  uptrend from the low of 4700 is over and then NIFTY can be expected to trade with a sideways or negative bias. It will then have  supports @ 4995 - 4957 - 4913. How the NIFTY trends after making an intermediate high and on breaking of 5050 will determine its future. If the NIFTY does not break  below 4900 and trades in 5150 - 4950 range, it will have bullish implications after the correction. On the other hand if the NIFTY after  breaking 5050, goes ahead and also breaks 4770, it will have bearish implications. As in the current week we have many important events  like IIP data & RBI policy on the domestic front and the Greece elections on the international front, how the NIFTY trades this week  should be extremely crucial.  Ideally look if the NIFTY posts an important high in the resistance area of around 5144 - 5175 by tuesday and then breaks the low of  monday (5095) as of now, These could be the first sign that NIFTY is entering into a corrective phase. As our bear stop loss has been hit,  we would be bullish at lower levels after a 2/3 day corrective fall.