WEEKLY MARKET UPDATE AS ON MONDAY 4 th JUNE 2012

Our last weekly update was not precisely as the NIFTY moved. However after the NIFTY hit a weekly high of 5020 0n tuesday and fell to 4975, we had informed all clients that if the NIFTY has made an intermediate high of 5020 it was likely to fall and break 4812 before monday the 4th of June. Accordingly now on 4th June NIFTY has broken the 4812 and is trading @ 4790, which confirms that the NIFTY has made an intermediate high of 5020 and has started a fresh new fall. In the month of June as the NIFTY has commenced a new fall, the targets for the month of June are upto 4682 - 4525. Once the NIFTY closes below 4682 before 15th June, we can then expect a target of 4525 by end of June. In the current week NIFTY has support @ 4783 - 722 - 4680 - 4600. Resistance on the upside can be expected @ 4880 - 4925 - 5000. Ideally on Monday the NIFTY appears to be holding the morning low of 4770. If these lows are held, expect a slow and small trading bounce to 4850 - 4880 over the next few days . It is also possible that the NIFTY trades in a small range of 4770 - 4850 for the next 2 days, before commencing a fresh fall on the downside. Traders should use this small trading bounce to initiate shorts at higher levels of 4850 + with a stop loss of 5000 on a closing basis. NIFTY can then be expected to hit its first target of 4682 before 15th June. Sell on 1/2 rally remains the trading strategy.