WEEKLY MARKET UPDATE AS ON MONDAY 16 th JULY 2012

NIFTY SPOT - (5228)

In our last weekly update we had given 2 wave counts but had given a higher weightage for a slightly more bearish outlook,  wherein if the NIFTY breaks 5260 a fall to 5150 - 5100 was expected. NIFTY broke below 5260 and then made a weekly low of 5217 and closed the week @ 5228. In the current week NIFTY has resistance @ 5284 - 5360 - 5450 while support is @ 5210 - 5181 - 5136. Even though we have a bullish outlook on the NIFTY, it is likely that NIFTY can post a mild dip to levels of 5181 - 5131 by  wednesday / thursday. This dip will be accompanied with low trading volumes and lack of trading interest. Even though this small fall is expected it will be advisable to refrain from selling @ 5225 levels, but instead wait patiently for a small 2/3 day fall o 5181 - 5136 levels and look for buying opportunities after wednesday near 5180 - 5136 levels, for a target of 5400 + and with a stop loss of 5059 on a closing basis.

POSITIONAL TRADING CALL

Buy BHEL on decline to 227 by wednesday/thursday. Stop Loss 219. Breakout @ 237. Target 248 - 270.